Edgeworth Alfred Marshall John Bates Clark Irving Fisher Knut Wicksell Lausanne School The Lausanne School of economics is an extension of the neoclassical school of economic thought, named after the University of Lausanne in Switzerland. The school is primarily associated with Léon Walras and Vilfredo Pareto, both of whom held successive professorships in political economy at the university, in the latter half of the 19th century. Beginning with Walras, the school is credited with playing a central role in the development of mathematical economics. For this reason, the school has also been referred to as the Mathematical School. A notable work of the Lausanne School is Walras’ development of the general equilibrium theory as a holistic means of analysing the economy, in contrast to partial equilibrium theory, which only analyses single markets in isolation. The theory shows how a general equilibrium is reached through the interaction between demand and supply in an economy consisting of multiple markets operating simultaneously. The Lausanne School is also largely credited with the foundation of welfare economics, through which Pareto sought to measure the welfare of an economy. Contrary to utilitarianism, Pareto found that the welfare of an economy cannot be measured by aggregating the individual utilities of its inhabitants. Since individual utilities are subjective, their measurements may not be directly comparable. This led Pareto to conclude that if at least one person's utility increased, while nobody else was any worse off, then the welfare of the economy would increase. Conversely, if a majority of people experienced an increase in utility while at least one person was worse off, there could be no definitive conclusion about the welfare of the economy. These observations formed the basis of Pareto efficiency, which describes a situation or outcome in which nobody can be made better off without also making someone else worse off. Pareto efficiency is still widely used in contemporary welfare economics as well as game theory. Léon Walras Vilfredo Pareto Austrian School Austrian economists advocate methodological individualism in interpreting economic developments, the subjective theory of value, that money is non-neutral, and emphasize the organizing power of the price mechanism (see Economic calculation debate) and a laissez faire approach to the economy. Carl Menger Eugen von Böhm-Bawerk Ludwig von Mises Friedrich Hayek Friedrich von Wieser Henry Hazlitt Frank Fetter Israel Kirzner Murray Rothbard Robert P. Murphy Lew Rockwell Peter Schiff Marc Faber Walter Block Hans-Hermann Hoppe Jesús