Contending Economic Theories: Neoclassical, Keynesian, and Marxian

by Richard D. Wolff, Stephen A. Resnick

Overview

A systematic comparison of the 3 major economic theories—neoclassical, Keynesian, and Marxian—showing how they differ and why these differences matter in shaping economic theory and practice.

Contending Economic Theories offers a unique comparative treatment of the three main theories in economics as it is taught today: neoclassical, Keynesian, and Marxian. Each is developed and discussed in its own chapter, yet also differentiated from and compared to the other two theories. The authors identify each theory's starting point, its goals and foci, and its internal logic. They connect their comparative theory analysis to the larger policy issues that divide the rival camps of theorists around such central issues as the role government should play in the economy and the class structure of production, stressing the different analytical, policy, and social decisions that flow from each theory's conceptualization of economics.
 
Building on their earlier book Economics: Marxian versus Neoclassical, the authors offer an expanded treatment of Keynesian economics and a comprehensive introduction to Marxian economics, including its class analysis of society. Beyond providing a systematic explanation of the logic and structure of standard neoclassical theory, they analyze recent extensions and developments of that theory around such topics as market imperfections, information economics, new theories of equilibrium, and behavioral economics, considering whether these advances represent new paradigms or merely adjustments to the standard theory. They also explain why economic reasoning has varied among these three approaches throughout the twentieth century, and why this variation continues today—as neoclassical views give way to new Keynesian approaches in the wake of the economic collapse of 2008.

Product Details

ISBN-13:	9780262517836
Publisher:	MIT Press
Publication date:	09/07/2012
Series:	The MIT Press
Pages:	424
Sales rank:	316,546
Product dimensions:	8.90(w) x 6.00(h) x 0.90(d)
Age Range:	18 Years

About the Author

Richard D. Wolff is Professor of Economics Emeritus at the University of Massachusetts, Amherst, and Visiting Professor in the Graduate Program in International Affairs at the New School, New York. Wolff and Resnick are the authors of Economics: Marxian versus Neoclassical.

Stephen A. Resnick was Professor of Economics Emeritus at the University of Massachusetts, Amherst.

Table of Contents

Detailed Table of Contents vii

To Our Readers xiii

Acknowledgments xvi

1 Three Different Theories 1

2 Neoclassical Theory 51

3 Keynesian Theory 105

4 Marxian Theory 133

5 Late Neoclassical Theory Yahya M. Madra 251

6 Oscillations in Capitalism and among Economic Theories 311

7 The Importance of Theoretical Differences 347

Notes 379

References 383

Index 387

What People are Saying About This

Richard McIntyre

Richard Wolff and Stephen Resnick treat their readers as adults who can, and in fact must, choose among theories, rather than as children who need to be spoon-fed the truth. Their clear and creative presentation of the different entry points, logics and conclusions of neoclassical, Keynesian and Marxian theories makes this by far the best comparative treatment of economics available today. Readers will have a grasp of the history of these theories as well as the latest developments in them, and will see how theories change in mutual interaction with changes in the economy. Which theory we choose to follow matters profoundly. Contending Economic Theories gives students the tools to choose for themselves.

Endorsement

Richard Wolff and Stephen Resnick treat their readers as adults who can, and in fact must, choose among theories, rather than as children who need to be spoon-fed the truth. Their clear and creative presentation of the different entry points, logics and conclusions of neoclassical, Keynesian and Marxian theories makes this by far the best comparative treatment of economics available today. Readers will have a grasp of the history of these theories as well as the latest developments in them, and will see how theories change in mutual interaction with changes in the economy. Which theory we choose to follow matters profoundly. Contending Economic Theories gives students the tools to choose for themselves.

—Richard McIntyre, University Honors Program Director, Professor of Economics, University of Rhode Island

From the Publisher

Clear, comprehensive, and brimming with provocative insights, this new book by Richard Wolff and Stephen Resnick's book is a much-needed presentation of the three theories—neoclassical, Keynesian, and Marxist—that make up the contested terrain of contemporary economics. There is simply no other text that brings together the material assembled here. Throughout, the authors are sensitive to the causes and consequences of theoretical differences and demonstrate—to teachers and students of economics, and to everyone else who wants to learn about economic debates in the world today—that economic theories really do matter.

—David F. Ruccio, Professor of Economics, University of Notre Dame

At a time when the world is in an economic tailspin, confusion over the 'dismal science' has never been more pronounced. By carefully describing neo-classical microeconomics and Keynesian macro-economics, and by juxtaposing both to Marxian economic theory, Richard Wolff and Stephen Resnick provide an essential guide for building a more just future.

—David Fasenfest, Wayne State University; editor, Critical Sociology

Richard Wolff and Stephen Resnick treat their readers as adults who can, and in fact must, choose among theories, rather than as children who need to be spoon-fed the truth. Their clear and creative presentation of the different entry points, logics and conclusions of neoclassical, Keynesian and Marxian theories makes this by far the best comparative treatment of economics available today. Readers will have a grasp of the history of these theories as well as the latest developments in them, and will see how theories change in mutual interaction with changes in the economy. Which theory we choose to follow matters profoundly. Contending Economic Theories gives students the tools to choose for themselves.

—Richard McIntyre, University Honors Program Director, Professor of Economics, University of Rhode Island

David Fasenfest

At a time when the world is in an economic tailspin, confusion over the 'dismal science' has never been more pronounced. By carefully describing neo-classical microeconomics and Keynesian macro-economics, and by juxtaposing both to Marxian economic theory, Richard Wolff and Stephen Resnick provide an essential guide for building a more just future.

David F. Ruccio

Clear, comprehensive, and brimming with provocative insights, this new book by Richard Wolff and Stephen Resnick's book is a much-needed presentation of the three theories—neoclassical, Keynesian, and Marxist—that make up the contested terrain of contemporary economics. There is simply no other text that brings together the material assembled here. Throughout, the authors are sensitive to the causes and consequences of theoretical differences and demonstrate—to teachers and students of economics, and to everyone else who wants to learn about economic debates in the world today—that economic theories really do matter.