Mirage and Reality: Reflections on the Neoclassical Interpretation of Adam Smith's Intellectual Heritage

Research output: Working paperDiscussion paper

10 Citations (Scopus)
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Abstract

The main premise of the neoclassical theory is built on the idea that markets have inherent self-adjusting mechanisms and that everything that facilitates 'free' markets should be the ultimate aim of policy making. The neoclassical theory claims that the theoretical pedigree of this proposition can be found in Adam Smith. Contrary to this neoclassical claim, this review provides evidence that Smith has been very careful to draw the attention to the failures of the egoistic pursuit of profit and to highlight the dangers of unhindered operation of a 'free market' system and reviews his conscious attempts to highlight that the private interest and the social interest are not always compatible.
Original languageEnglish
PublisherUniversity of Aberdeen Business School
Volume19-1
Publication statusPublished - Feb 2019

Publication series

NameDiscussion Papers in Economics and Finance
PublisherUniversity of Aberdeen

Keywords

  • Economics

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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  • Cite this

    Theodossiou, I. (2019). Mirage and Reality: Reflections on the Neoclassical Interpretation of Adam Smith's Intellectual Heritage. (Discussion Papers in Economics and Finance). University of Aberdeen Business School.