Defects of Models of Western Economics and Construction of CSSE Economics

This article maintains that the paradigm of economic analysis based on the framework of neo classi cal economics analysis not only goes against the economic reality, but also fails to explain the essence or regularity that determines the economic phenomena. From the point of view of methodology, the mainstream new classical economics belongs to a formal economics, while both the new and the old institutional economics are viewed as a response to the mainstream models of Western economics. Marxist economics, by contrast, is one that integrates the form of logical expression of economy and the reality of the economic system. It is a school of substantive economics free of the defects that the new and old institutional economics suffer. While constructing CSSE Economics, the author points out, caution should be taken to avoid the defects of the paradigm of Western economics.