IDEAS home Printed from https://ideas.repec.org/a/ana/elitjr/v1y2019i1p1-23.html
   My bibliography  Save this article

Breake from Creative Destruction: The Demolishment of Neo-Classical Economics

Author

Listed:
  • Kubra Aycan Gelekci

    (Department of Economics, Eskisehir Osmangazi University)

  • Arif Kilic

    (Department of Economics, Eskisehir Osmangazi University)

Abstract

The story of the industrialization process began in England has brought about a deep transition in terms of relations of production, and this led to brand new objective conditions that caused the economy to go into a major metamorphosis by changing the institutional and intellectual structure. This process has been influential in changing the discipline of economics. The classical theory of economics, which began with optimistic terms like freedom and perfect competition, evolved into “dismal science”, got replaced by a transition called marginal revolution, and furthermore, with critics, by Neo-classical theory of economics which was mesmerized by mathematics. While moving away from practice for the sake of being scientific, Neo-classical economics tried to utilize laws of physics on human beings, put the emphasis on the principle of rationality and the perceived economy as a machine. The theory’s inability to explain the contemporary world and its habit of reducing economics to abstract mathematics, combined with its mistaken ideal to explain economics by cause-and-effect relation as in natural sciences, caused economics to be isolated from other disciplines. This study presents a critical approach to the emergence of Neo-Classical economics by discussing the contextual structure and conditions of its birth from a historical perspective.

Suggested Citation

  • Kubra Aycan Gelekci & Arif Kilic, 2019. "Breake from Creative Destruction: The Demolishment of Neo-Classical Economics," Economics Literature, WERI-World Economic Research Institute, vol. 1(1), pages 1-23, June.
    • Handle: RePEc:ana:elitjr:v:1:y:2019:i:1:p:1-23
    DOI: 10.22440/elit.1.1.1
    as

    Download full text from publisher

    File URL: https://elit.weri.eu/index.php/elit/article/view/4/8
    Download Restriction: no
    File URL: https://libkey.io/10.22440/elit.1.1.1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Colander & Richard Holt & Barkley Rosser, 2004. "The changing face of mainstream economics," Review of Political Economy, Taylor & Francis Journals, vol. 16(4), pages 485-499.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yann Giraud, 2017. "The Contestable Marketplace of Ideas: Paul Samuelson’s Defense of Mainstream Economics through Textbook Making, 1967-1976," THEMA Working Papers 2017-19, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. Mazaher Kianpour & Stewart J. Kowalski & Harald Øverby, 2021. "Systematically Understanding Cybersecurity Economics: A Survey," Sustainability, MDPI, vol. 13(24), pages 1-28, December.
    3. Alexandre Truc, 2023. "Neuroeconomics: Hype or Hope? An Answer," Post-Print hal-04719266, HAL.
    4. Richard Holt & J. Barkley Rosser & David Colander, 2011. "The Complexity Era in Economics," Review of Political Economy, Taylor & Francis Journals, vol. 23(3), pages 357-369.
    5. Angela Ambrosino & Mario Cedrini & John B. Davis, 2024. "Today’s economics: one, no one and one hundred thousand," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 31(1), pages 59-76, January.
    6. Kurt W. Rothschild, 2007. "Einige Bemerkungen zum Thema Mainstream und Heterodoxie," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 33(4), pages 581-590.
    7. Røpke, Inge, 2020. "Econ 101—In need of a sustainability transition," Ecological Economics, Elsevier, vol. 169(C).
    8. Beckenbach, Frank, 2019. "Monism in modern science: The case of (micro-)economics," Working Paper Serie des Instituts für Ökonomie Ök-49, Hochschule für Gesellschaftsgestaltung (HfGG), Institut für Ökonomie.
    9. Piergiuseppe Morone & Richard Taylor, 2011. "Knowledge Diffusion and Innovation: Modelling Complex Entrepreneurial Behaviours by Piergiuseppe Morone and Richard Taylor: A Response to the Review," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 14(2), pages 1-7.
    10. Christian Grimm & Jakob Kapeller & Stephan Puehringer, 2017. "Zum Profil der deutschsprachigen Volkswirtschaftslehre: Paradigmatische Ausrichtung und politische Orientierung deutschsprachiger Oekonom_innen (On the current state of German-speaking Economics: Para," ICAE Working Papers 70, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    11. Fontana, Magda, 2010. "Can neoclassical economics handle complexity? The fallacy of the oil spot dynamic," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 584-596, December.
    12. Urban, Janina & Rommel, Florian, 2020. "German economics: Its current form and content," Working Paper Serie des Instituts für Ökonomie 56, Hochschule für Gesellschaftsgestaltung (HfGG), Institut für Ökonomie.
    13. Horodecka, Anna & Śliwińska, Magdalena, 2019. "Fair Trade phenomenon – limits of neoclassical and chances of heterodox economics," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 6(3), pages 1-29, July.
    14. Mario A. Cedrini & Roberto Marchionatti, 2017. "On the Theoretical and Practical Relevance of the Concept of Gift to the Development of a Non-imperialist Economics," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 633-649, December.
    15. Pessali, Huascar & Berger, Bruno, 2010. "A teoria da perspectiva e as mudanças de preferência no mainstream: um prospecto lakatoseano [Prospect theory and preference change in the mainstream of economics: a Lakatosian prospect]," MPRA Paper 26104, University Library of Munich, Germany.
    16. Tae-Hee Jo, 2021. "Veblen’s evolutionary methodology and its implications for heterodox economics in the calculable future," Review of Evolutionary Political Economy, Springer, vol. 2(2), pages 277-295, July.
    17. David Colander, 2009. "Can European Economics Compete with U.S. Economics? And Should It"," Middlebury College Working Paper Series 0902, Middlebury College, Department of Economics.
    18. Ambrosino, Angela & Fontana, Magda & Gigante, Anna Azzurra, 2015. "Shifting Boundaries in Economics: the Institutional Cognitive Strand," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201544, University of Turin.
    19. Jackson, William A., 2013. "The Desocialising of Economic Theory," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 40(9), pages 809-825.
    20. repec:hal:journl:hal-00993435 is not listed on IDEAS
    21. Barbara Dluhosch, 2011. "European Economics at a Crossroads, by J. Barkley Rosser, Jr., Richard P. F. Holt, and David Colander," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 629-631, August.

    More about this item

    Keywords

    Classical and Neo-Classical Economics; Industrial Revolution; Marginal Revolution; Labor Theory of Value;
    All these keywords.

    JEL classification:

    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

    Statistics

    Access and download statistics

    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:ana:elitjr:v:1:y:2019:i:1:p:1-23. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Unal Tongur (email available below). General contact details of provider: https://edirc.repec.org/data/ewanatr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.