Neoclassical Economics

Most of modern economic theory is based on this set of assumptions and mathematical models of markets. Neoclassical economic theory believes that markets are the best mechanisms for solving problems and are most effective when left alone without government or corporate interference. While this may be true, it is only so when markets and economies build-in realistic ground rules often missing in most implementations. These include, full-life-cycle analysis of cost-accounting, the value of natural and human capital use and replacement, environmental services, remediation costs, etc.