EVALUATING NEOCLASSICAL ECONOMICS: THEORETICAL INSIGHTS AND REAL-WORLD APPLICATIONS

This research shows a review of the Neoclassical Economics theory with a view of discovering or disputing the claim – where possible – that the neoclassical theory is dead and worthless. This paper plagiarizes from the outcome of previous and relevant study conducted on this same proposition and uncovers the existence of a huge controversy in the literature – both old and new – of the effectiveness of the neoclassical economics. Given the lack of consensus on the neoclassical economics debate, the author of this manuscript then shows that while the Neoclassical theory is may not be dead; its effectiveness and efficiency given its entire underlying hypothesis that may be well within doubt. Furthermore, the paper found that requesting the death of a model can only occur when the primary assumptions or hypothesis of that model is conducted and still the model fails to deliver valuable results. In the case of the neoclassical economics model; the only criticism can be that the fundamental assumptions nor hypothesis cannot embrace in a real-world situation. Therefore, declarations of its death cannot stand firm in an authorized argument – its efficiency maybe; but certainly not death. The author does however try to provide a brief assessment of the various extensions and alternatives of the neoclassical model that have evolved in a bid to augment its supposed failings.