Increasing returns and decreasing costs

Before discussing evidence for the shape of cost functions it is useful to go over the relationship between cost functions and production functions. The concepts of increasing returns and increasing costs are often confused in these discussions. Empirical studies do not usually attempt to measure cost functions but instead measure properties of production functions, andContinue reading “Increasing returns and decreasing costs”

The math behind supply curves

When I took introductory microeconomics towards the end of my undergraduate I expected almost everything in the course to be nonsense. Most of the claims of the economics profession that I had encountered seemed to me to be so far from the world around me that I expected the course to be full of errors.Continue reading “The math behind supply curves”

Supply and demand: reasons for scepticism

Supply and demand is perhaps the best known concept in economics. Much of undergraduate microeconomic teaching is based on this concept, and there is general agreement that it is one of the foundational concepts of the field. Even professors whose work involves challenging some of the assumptions of the field refer to it as theContinue reading “Supply and demand: reasons for scepticism”


This blog, like so many others, will primarily be dedicated to criticising mainstream, or neoclassical economic thought, although I will undoubtedly be unable to resist criticising other schools of economics from time to time. There are of course many bloggers and academics criticising mainstream economics, however I believe many of the criticisms I am makingContinue reading “Introduction”