Abstract
This article deals with the history and main protagonists of the Chicago School from c. 1930 to 1985. The two main beliefs of members of the School are (a) that neoclassical price theory can explain observed economic behaviour, and (b) that free markets efficiently allocate resources and distribute income, implying a minimal role for the state in economic activity. Chicagoans maintain that no opportunity for arbitrage gains goes unexploited, and subscribe to the efficient markets hypothesis. Their ‘disciplinary imperialism’ leads them frequently to challenge conventional wisdom by applying price theory to seemingly non-economic topics.
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Reder, M.W. (2018). Chicago School. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_83
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DOI: https://doi.org/10.1057/978-1-349-95189-5_83
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