A Critique of Orthodox Economics
An Alternative Model

Authors: Harold Lydall



Modern neoclassical economics is a theory of general equilibrium. It is based on highly unrealistic assumptions and yields a number of false predictions. The alternative model, presented in this book, uses a wider definition of technology, and emphasises the role of the entrepreneur as the primary agent of change. Because it takes time for firms to improve their technology, and to acquire the necessary finance for expansion, there are wide differences in firm sizes, and in their profitability. The competitive struggle to develop better technology raises the level of productivity of the whole economy, and leads to higher real incomes.

Table of contents

Front Matter

The Causes of Economic Growth

Neoclassical Theory

Technology

The Entrepreneur

The Innovating Firm

Product Differentiation

Aggregate Analysis

The Employment Limit

Economic Development

The Role of Government

Summary: The Case for a New Approach

Back Matter