Answer to Question #132554 in Microeconomics for Neba

Question

What are the contribution of individuals economists during classicism?

Answer 1

Classical Economics is an economic theory centered on the unbounded workings of markets and the pursuit of individual self-interest, particularly directed at macroeconomics. In the study of macroeconomics, conventional economics relies on three main assumptions; flexible prices, Say's law and balance between saving and investment. The key results of this principle are that markets are naturally regulated and thus make the best use of capital without government interference. The foundations laid by Adam Smith in 1776 in his book 'An Inquiry into the Nature and Causes of the Wealth of Nations' originated from classical economics.

The root of classical economics was, as stated, Adam Smith. In the 150 years after Adam Smith 's development, a number of other economists contributed significantly. A full list is currently not feasible, but it is possible to summarize the more significant players as below.

• David Ricardo-Many regarded Ricardo as the best known classical economist, Ricardo made a number of contributions, which remain important to the modern economics research, to international trade, labor markets and income distribution in the early 1800s. Maybe most notably the economy was seen by Ricardo as a complex system of components interrelated and a strong proponent of the principles set out by Adam Smith and Jean-Baptist Say.
• Jean-Baptiste Say-Say's most important thing is the classical law which argues out that, "supply generates its own demand." Say was an economist who contributed in the early 1800s to popularize Adam Smith 's work. Say also stressed the importance of entrepreneurship as a profitable faction and was one of the first to note that both the supply (resource cost) and the demand (satisfaction) have to do with value and price.
• John Stuart Mill-John Stuart Mill 's father, contemporary James Mill and colleague of Ricardo Malthus and other scholars from the previous century, took over the classic economic mantel in the mid 1800's. He has made important contributions not only to the key economic book used during this period, but also to the study of utility goods and the theory of market demand.
• Thomas Robert Malthus-Malthus developed a population growth theory, a contemporary for David Ricardo and an ordained minister, that indicated living standards would never rise above a minimum standard of subsistence. The Malthusian population growth theory contributed in large part to the economic analysis of wages and to the classification of economics as the "dismal" science.
• William Stanley Jevons-In a relatively short career, Jevons made some significant contributions to classical economy. At the top of the list was Jevons 's contribution to the mathematics of marginal economic analysis which turned classical economics into modern neoclassical economics. Jevons has also established a groundbreaking approach to businesses , particularly a "sunspot theory," which linked sunspot activities with farming and thus economic activity in general.
• Alfred Marshall-The work of Jevons in transition from classical to neoclassical economics was expanded by Marshall, perhaps one of the last of the great classical economists. He published for decades in 1890 the mainstream economics textbook and made it the poster boy for classical economics that led to the Great Depression. Marshall developed, among his many contributions, the modern Marshall market diagram, extensive use of economical graphical analysis, distinguishing between the short- and long-run and the principle of elasticity.