- noun the school of economics which followed classical economics in the latter part of the 19th century. It studied in particular to principles of allocation of resources (i.e. the factors of production), as opposed to the distribution of wealth proposed by the classical economists.
- (written as Neoclassical Economics)This is the 'modern' (as distinct from postmodern) synthesis of utilitarianism as applied to economic phenomena that forms the basis for most microeconomics and, in turn, most health economics. It is not constrained by the extreme assumptions of classical economics and has useful analyses of, for example, market imperfections, non-profit motivation, household behaviour, industrial regulation, international trade, and it comes in positive and normative guises. It remains, like classical economics, firmly rooted in individualism. The term was coined by Thorstein Veblen in 1899 in a series of articles in the Quarterly Journal of Economics.