Exploring the Best Theories to Discuss in Economics Dissertation

Economic theory is a set of ideas that tells how different economies function. These theories are deployed in different sub fields of economy, such as supply and demand, inflation and more. Whether if you are seeking to become an economist or writing assignment on it. These theories mentioned in the article are crucial to know for every student. The concepts discussed are used by economists to analyze, interpret and predict the behaviour of financial markets. Writing economic paper requires you deep delving to complex concepts, whereas to avoid that some students seek economic dissertation help.

Top 12 Economic Theories You can Discuss

There's an huge collection of theories available to learn about or you can discuss in your dissertation. Here's a brief explanation of 12 foundational theories in economics:

Supply and Demand

This theory is a part of microeconomics, it is an model for price determination. It states that the unit price of a product or service may vary until it settles at economic equilibrium or when the quantity at which consumers demand a good equals the quantity at which customer supplies.

For example: if supply of a product or service decreases and demand increases, the price may reach at highest. So, in this case the demand is greater than supply.

Classical Economics

This theory was stated by political thinkers like Adam Smith, John Stuart Mil and more. It states that market economies are, by definition, self-regulating systems  that are ruled by the laws of  productions and exchange.

Neoclassical Synthesis 

Neoclassical economics is theory that explains the production, pricing, consumption of good and services, and income distribution through the supply and demand. It discusses about the cost of  production theory from classical economics.  

Neo-Malthusian

The whole idea of this concept is growth in population means increases in demands of food supply and need in other sources. As the number  of  human grows, society's ability to produce resources. The people may need to compromise with the standard of living and usage of the available goods. Many of the famous schools have largely discredited this theory as it relates to agricultural production.

Marxism

Marxism discusses about the impact of capitalism on an economy development. It says that the society consists of two socioeconomic classes:

1. The Bourgeoisie Class (The ruling class)

2. The proletariat Class (The working class) 

Laissesz Faire Cappitalism

The theory discusses about free market-capitalism directly opposed to government laws such as regulation, subsidies and more. "leave Alone" The direct translation of the french term Laisses Faire. It is trying to say that a economy can only grow when economy leaves alone.

Market Socialism

The other name for this is liberal socialism, it proposes the creation of an economy that have elements like socialist planning and free enterprise. By market socialist system capital is owned cooperatively, but market has the right to force production and exchange rather than government.

Monetarism

This theory promotes that government can achieve economic stability by controlling monetary supply. The key principle of this theory is that the total amount of money circulating is economy is the main factor that determines the growth of it. Moreover, if you need help with your paper, you can seek dissertation help.

Solow Model

This model is to  analyzes the changes in the level of output in an economy over time, keeping the result of changes in the population growth rate, the savings rate and the rate of technological processes. 

Tragedy of the Commons 

The theory talks about economic problem relating to usage of sources and its over exploitation by formal governing bodies. It states that individuals who have unrestricted access to a resource are likely to not take care of the usage, which can lead to depletion of them. This theory has led to contribution in growth of practices like sustainable development, environmental protection.

Moral Hazard Theory

The theory states  when an company, increases its exposure to risk to maximize its profit during a transaction. Moral hazard is an economic factor observed throughout systems in history in which they enter a contract with bad intentions.

This scenario puts the other party in a risky position.

Human Growth Theory

It states that human desires increases the rate of production and continued economic growth. The key concept behind is that competition flattens profit and makes people seek better, and efficient ways to maximize their profits. The theory is applicable on entrepreneurship, knowledge, innovation and technological advancements.

New Trade Theory

It explains that modern trades are based on economics of scale, network effects, and advantage of first moving. This theory also throws light on the main reason behind globalization and trading between similar economies. Moreover, the roles of governments in trades and industrialization of an country.

Washington Consensus 

The British Economist, John Williamson gave this theory. The idea behind it was to develop  countries that were facing economic crisis. The key principle was for the countries to create structural reforms that increased the role of market forces in exchange for sustaining financial crisis.

Prospect Theory 

It says that losses and gains are valued differently, and individuals make decision on the basis of gains instead of losses. It is also known as loss aversion theory, the general concept is that if two choices are given to an individual, both equal,  but one is potentially profiting and the other has potential loss, there are high chances that first option will be chosen.

Efficient Market Hypothesis

It is a theory that suggest that  the prices of financial instruments reflect all available market information. It proposes that markets are efficient and it leaves no room to make excess profit by investing since everything is already fair and with accurate prices. 

Conclusion

So, these were the few economic theories you can discuss in your dissertation. You can learn about more of them by researching on books and internet. An economist use theories to identify market trends, analyze trade patterns, it depends on their role. As written above economics is a vast ocean, to excel your knowledge in this subject, you have jump deep down and learn about the concepts. Moreover, writing an dissertation requires more preparation to begin with because it is a lengthy task. However, if you need some guidance with your paper or you are stuck at what you can write in your project, you can seek economics dissertation help.