Allocative processes in Economics: A template for classifying economic theories

Abstract

Economic theories, regardless of their specific type or adscription to any school of thought, typically deal with processes of resource allocation (allocative processes). It is the different visions of human nature and society (and, therefore, their schemes of interaction) specific to each theory that explain the existence of different theoretical proposals. In this article, we identify some of the basic elements of all economic theory, and for classifying purposes, we propose a straightforward template that allows us to generate a taxonomy for the study of different theories. As an extension of this exercise, we also discuss the minimum conditions for explanation gain criterion in economic theories.