CLASSICAL ECONOMIC THEORY
Known also as laissez faire, the 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 economics is widely regarded as the first modern school of economic thought. Its major developers include Adam Smith, David Ricardo, Thomas Malthus and John Stuart Mill. Sometimes the definition of 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 economics. The 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) © 1990 Union for Radical Political
Input-Output Analysis and Classical Economic Theory - Heinz
D. Kurz, Christian Lager