This paper aims to describe the relationship between State and Market presented by classical economists. In general, there is accord on the importance of market to the right performance of economy. However, the invisible hand metaphor or the notion of laissez-faire gets less attention to the...

In classical and Marxian political economy economic advancement takes place in stages of development. These stages are characterized by different functional distributions of income. In this paper we show that the Cobb-Douglas Production Function is the only production function which has the...

An important question for any researcher who wishes to revisit the socialist calculation debate is: Why beat a dead horse? With the collapse of the communism in 1991, other than for historical purposes, there seems to be little value in rehashing the debate over socialism’s feasibility....

Ronald Coase merged two traditions in economics, marginalism and institutionalism. Neoclassical economics in the 1930s was characterized by an abstract conception of marginalism and frictionless resource movement. Marginal analysis did not seek to uncover the source of individual human...

Hayek is known primarily as an economic theorist and classical liberal political economist. A few scholars have delved deeply into the connection between Hayek's analytical contributions to economics and his visionary political economy of liberalism, but most prefer to divide Hayek's career into...

The assumption of rationality is central in current economic theory. This hypothesis is the pillar for the creation of the homo economicus of conventional theory. Starting with Adam Smith’s approach to rationality, the aim of this paper is to contribute to the discussion of the main...