IDEAS home Printed from https://ideas.repec.org/a/taf/rsocec/v62y2004i2p169-199.html
   My bibliography  Save this article

The Incoherent Emperor: A Heterodox Critique of Neoclassical Microeconomic Theory

Author

Listed:
  • Frederic Lee
  • Steve Keen

Abstract

It is somewhat common for heterodox economists to come to the defense of neoclassical microeconomic theory. This is due to many reasons, but perhaps the commonest one is ignorance. It seems that most heterodox economists are not aware of the many critiques or that as a collective they completely undermine neoclassical theory. The objective of the article is to dispel ignorance by using the existing criticisms to delineate a systematic critique of the core components of neoclassical microeconomic theory: the supply and demand explanation of the price mechanism and its application to competitive markets. The critique starts by examining the choices, preferences, utility functions, and demand curves, followed by examining production, costs, factor input demand functions and partial equilibrium, and ending with perfect competition and the supply curve. In the conclusion, the implications of the results will be extended to the firm and imperfectly competitive markets, and then the question whether general equilibrium theory or game theory can save neoclassical microeconomic theory.

Suggested Citation

  • Frederic Lee & Steve Keen, 2004. "The Incoherent Emperor: A Heterodox Critique of Neoclassical Microeconomic Theory," Review of Social Economy, Taylor & Francis Journals, vol. 62(2), pages 169-199.
  • Handle: RePEc:taf:rsocec:v:62:y:2004:i:2:p:169-199
    DOI: 10.1080/00346760410001684433
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00346760410001684433
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lane, David & Malerba, Franco & Maxfield, Robert & Orsenigo, Luigi, 1996. "Choice and Action," Journal of Evolutionary Economics, Springer, vol. 6(1), pages 43-76, February.
    2. Jesus Felipe & J. S. L. McCombie, 2005. "How Sound are the Foundations of the Aggregate Production Function?," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 467-488, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martha A. Starr, 2006. "Macroeconomic dimensions of social economics: Saving, the stock market, and pension systems," Working Papers 2006-09, American University, Department of Economics.
    2. Lima, Gerson P., 2015. "Supply and Demand Is Not a Neoclassical Concern," MPRA Paper 63135, University Library of Munich, Germany.
    3. Claudius Graebner, 2017. "The Complexity of Economies and Pluralism in Economics," ICAE Working Papers 69, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    4. Lee, Frederic, 2011. "The making of heterodox microeconomics," MPRA Paper 30907, University Library of Munich, Germany.
    5. Donald W. Katzner, 2015. "A Neoclassical Curmudgeon Looks at Heterodox Criticisms of Microeconomics," World Economic Review, World Economics Association, vol. 2015(4), pages 1-63, February.
    6. Dürmeier, Thomas, 2012. "Wissenschaftlicher Pluralismus als Entdeckungsverfahren und das Monopol der Modellökonomik," Discussion Papers 30, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    7. Robert Garnett, 2006. "Paradigms and pluralism in heterodox economics," Review of Political Economy, Taylor & Francis Journals, vol. 18(4), pages 521-546.
    8. Kakarot-Handtke, Egmont, 2003. "How to Get Rid of Demand–Supply–Equilibrium for Good," MPRA Paper 46917, University Library of Munich, Germany.
    9. D.Dragone, 2005. "Incoerenza Dinamica ed Autocontrollo: Proposta per un'Analisi Interdisciplinare," Working Papers 549, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Robert Lepenies, 2014. "Economists as political philosophers : a critique of normative trade theory," RSCAS Working Papers 2014/11, European University Institute.
    11. Zaman, Asad & Saglam, Ismail, 2010. "The conflict between general equilibrium and the Marshallian cross," MPRA Paper 33256, University Library of Munich, Germany.
    12. Frank Beckenbach & Ramón Briegel, 2010. "Multi-agent modeling of economic innovation dynamics and its implications for analyzing emission impacts," International Economics and Economic Policy, Springer, vol. 7(2), pages 317-341, August.
    13. Lee, Frederic, 2011. "Heterodox microeconomics and the foundation of heterodox macroeconomics," MPRA Paper 30491, University Library of Munich, Germany.
    14. Grahamm Errol G., 2013. "Perverse supply response in the Liberian mining sector," Policy Research Working Paper Series 6663, The World Bank.
    15. Wicks, Rick, 2011. "Assumption without representation: the unacknowledged abstraction from communities and social goods," MPRA Paper 51674, University Library of Munich, Germany.
    16. Robert Gassler, 2007. "Political and Social Economics: Beyond Orthodoxy and Heterodoxy," Forum for Social Economics, Springer;The Association for Social Economics, vol. 36(2), pages 109-125, October.
    17. Greenblatt, R.E., 2014. "A dual theory of price and value in a meso-scale economic model with stochastic profit rate," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 416(C), pages 518-531.
    18. Robert Gassler, 2007. "Political and Social Economics: Beyond Orthodoxy and Heterodoxy," Forum for Social Economics, Taylor & Francis Journals, vol. 36(2), pages 109-125, January.
    19. Rick Wicks, 2011. "Markets, Governments—," Challenge, Taylor & Francis Journals, vol. 54(4), pages 65-96.
    20. Viola Burau & Lotte Bøgh Andersen, 2014. "Professions and Professionals: Capturing the Changing Role of Expertise Through Theoretical Triangulation," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(1), pages 264-293, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsocec:v:62:y:2004:i:2:p:169-199. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RRSE20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.