The Chicago school is a trend in economic theory. The most influential representative of the school was an American economist, a Nobel Prize winner in economics Milton Friedman . The main representatives are G. Demsetz , J. Stigler , F. Knight , G. Simons , L. Mints , J. Weiner , F. Keigen , A. Schwartz , T. Schulz , A. Harberger , G. Becker .
The Chicago school began to take shape in the 1930s , it finally formed in the 60s and 70s of the 20th century .
The Chicago school is in a certain sense contrasted with the Harvard school . In particular, representatives of this direction did not adhere to the paradigm "structure - behavior - result" and believed that the structure of the industry does not completely determine the behavior of the players.
General Provisions
In this school, the microeconomic approach to market analysis prevails. So, Demsetz adhered to the point of view that the economy of industry markets does not exist as a separate area of economic theory, but coincides with the theory of contractual prices.
The three most important components of the school are monetarism , the economy of information, and the economy of the household.
The central idea is the “ optimizing behavior ” of economic agents. It assumes that the basic economic unit is “a person selfish”. He seeks to maximize utility, salary, profit. He acts rationally. It is based on the uncertainty of the benefits and costs and therefore is searching for information.
The economy does not need regulation, it is much more important for those who receive the benefits of regulation. If the state does not intervene in the regulation of the market, then in the long term, current prices will tend to competitive, reasonable opportunity costs. Do not be afraid of monopoly - the market will destroy the monopoly price.
School tools are based on a mathematical analysis of equilibrium systems — Leon Walras’s general economic equilibrium model , rather than partial ( Alfred Marshall ).
See also
- Theory of industry markets
- Chicago boys
Links
- Chicago School // Great Soviet Encyclopedia