New Classical Economics and the ultra-marginal analysis

Document Sample
New Classical Economics and the ultra-marginal analysis Powered By Docstoc
					New Classical Economics and the ultra- marginal analysis
New Classical Economics
    After 80 years since the 20th century, Chinese economists of Australia represented
a group of economists Xiaokai, with linear programming and other non-classical
mathematical programming methods, will be abandoned by the new classical
economics classical economics on the division of labor and specialized wonderful
economic ideas, into a decision-making and equilibrium model, and set off a revival
with the classical economics of modern analytical tools of thought. For example, in
their personal and professional level of decision- making level of the evolution of a
balanced division of labor based on Smith's division of labor re-set theory
and its discussion of the reasons for international trade. Their study aims to find a
scientific mechanism for economic growth, micro-, macro-economic growth of
micro-established model; they will be the new classical economics,
"Economics is the study of scarce resources in a variety of economic uses
of knowledge between the rational allocation "The definition of
change," Economics is the study of various economic activities Zhong
Dilemma of Learning ", Qi Zhu Yao task yes right Jishu and the interact ion
between economic organization and its evolution Guocheng of Yan Jiu. Xiaokai et al
proposed a new theory has been more widely recognized, and gradually form a new
school of economics, this genre is called "new classical
economics" (New Classical Economics), as distinct from the neo-classical
economics (Neoclassical Economics).
    Ultra- marginal analysis (Inframarginal Analysis)

Xiaokai inframarginal analysis is made, it is a new classical economics analysis.
Professor Yang Xiaokai original ultra- marginal analysis, and use this method of Adam
Smith resurrected the importance of thinking about the division of labor. New
Classical Economics ultra marginal analysis, from the professional level of individual
choice within the new restructuring of the neoclassical view of economics as the core
of a variety of mutually independent economic theory, economic development is the
leading subject. Namely, marginal analysis of each corner point, and then used at a
corner between the total benefit cost analysis, it deals with the corner solution optimal
decision necessary.

Xiaokai propose and study new classical economics and the ultra- marginal analysis
and theory, was the Nobel laureate in economics, Buchanan called the economics of
today's most important research results.
What is the super- marginal analysis
Modern mainstream economics textbooks to marginal utility and marginal
productivity analysis is based on marginal analysis. Xiaokai that marginal analysis
can not resolve the division of labor, so the introduction of ultra- marginal analysis. In
short, ultra-marginal analysis is based on the range of products, manufacturers such as
volume and transaction costs into the analysis framework of analysis.
Inframarginal analysis includes corner balanced and all the balance of two parts, it is
quite different corner solution of the local maximum from which the overall optimal
solution. That it is based on each corner solution equilibrium, all of the many corner
equilibrium is a balanced one. The full balance to satisfy the following two conditions:
First, given the price and selection of the number of different models, each person
choose the level and pattern of specialization to maximize effectiveness; Second,
relative prices and choose the number of each model so that supply and demand are
equal, also effective in a structure equal in all modes. That each corner balanced
solution to the division of the level of resource allocation problem, and all balanced
division of the level and structure of the decision. The new classical economics as the
allocation of resources only solution can not be the level and structure of the
endogenous division of labor, so new classical economics of each corner point of
equilibrium is equivalent to a neo-classical economics, all balanced.

Inframarginal analysis of the steps
Inframarginal analysis is divided into three steps: first, the optimal schema theorem
can not be ruled out that the optimal corner solution; the second step, each of the
remaining portfolio (corner solution) with a "marginal analysis"
method to solve, find a local optimal value of each; the third step, comparing the
combination of the local maximum between the objective function value, the overall
optimal solution is the optimal solution of general equilibrium. Thus, both born out of
ultra- marginal analysis marginal analysis, marginal analysis included more than in it.
As the new classical economics assumes that people not only consumers but also
producers, so under the ultra-marginal analysis, they not only make the marginal
consumer choice between a variety of products, but also what kind of products in the
professional production of choice for ultra- marginal. In fact, they are also involved in
the choice of the number of products sold, whether to hire workers, etc., these are a
number of ultra-marginal choice.
Inframarginal analysis and the difference between marginal analysis
Inframarginal analysis is based on the analysis in the marginal addition of a
"super", the "super" is also a step Duo,
more specifically that people Zuochu 资源 allocation decisions before Shuiping
choice of profession and the division of labor. Thus the resulting "corner
solution" and the analysis used to make it simpler, "Wen
Theorem" can not but say that this is a great innovation.
"Corner solution" is that people in the choice of professional
level generated, the new classical economics, which does not consider the corner
solution, because it is of marginal analysis can only be used within a point solution,
that is, given the division of labor and specialization level of resource allocation.

				
DOCUMENT INFO