CLASSICAL ECONOMIC THEORY
Known also as laissez faire, the classical economic theory claims that leaving individuals to make free choices in a free market results in the best allocation of scarce resources within an economy and the optimal level of satisfaction for individuals - the greatest happiness for the greatest number.
Classical economic theory or classical economics is widely regarded as the first modern school of economic thought. The major classical economic theory developers include Adam Smith, David Ricardo, Thomas Malthus and John Stuart Mill. Sometimes the definition of classical economic theory or classical economics is expanded to include William Petty, Johann Heinrich von Thünen, and Karl Marx.
The publication of Adam Smith's The Wealth of Nations in
1776 is usually considered to mark the beginning of classical economic theory. The
classical economic theory or classical economics school was active into the mid 19th
century and was followed by neoclassical economics in Britain beginning around 1870.
Capital Mobility and Unequal Profit Rates: A
Classical Theory of Competition by Boundedly Rational Firms - Marc van
Wegberg, University of Limburg, P.O. Box 616, 6200 MD Maastricht, The
Netherlands Review of Radical Political Economics, Vol. 22, No. 2-3, 1-16 (1990)
Input-Output Analysis and Classical Economic Theory
- Heinz D. Kurz, Christian Lager