Austrian Methodology

2015 ◽  
pp. 12-42
Author(s):  
Adam Martin
Keyword(s):  
Economic Theory ◽  
Austrian Economic ◽  
Social Ontology ◽  
Social Processes ◽  
Spontaneous Order ◽  
Ludwig Von Mises ◽  
Key Concepts ◽  
Carl Menger ◽  
Von Mises ◽  
Friedrich Hayek

This chapter offers a synthetic account of the key methodological ideas espoused by prominent Austrian economists. It focuses on the contributions of Carl Menger, Ludwig von Mises, Friedrich Hayek, Ludwig Lachmann, and Donald Lavoie, arguing that epistemological concerns fail to encapsulate their overlapping but distinctive and complementary methodological arguments. Their methodological positions are better explained as flowing from a shared and distinctive social ontology that underlies Austrian economic theory. Austrian social ontology is distinct because of its commitment to three key concepts: radical subjectivism, sheer ignorance, and spontaneous order. The chapter then presents a stylized schema of social processes that embodies these key concepts and shows that the schema both accommodates distinctively Austrian theories and allows for a synthesis of the key methodological contributions of all the Austrian economists discussed earlier.

scholarly journals Spontaneous Order Versus Central Planning: A comparison of MICHAEL POLANYI & F.A. VON HAYEK

2021 ◽  
pp. 173-215
Author(s):  
Patrick Reimers
Keyword(s):  
Free Market ◽  
Central Planning ◽  
Spontaneous Order ◽  
Austrian School ◽  
Michael Polanyi ◽  
Ludwig Von Mises ◽  
Role Of The State ◽  
Carl Menger ◽  
Von Mises

This paper evaluates and compares the main philosophic and economic thoughts of the two great liberal minds Michael Polanyi and Friedrich A. von Hayek in regards to the concept of a ‘spontaneous order’. In several of their books and papers, both Michal Polanyi (1941, 1948, 1951) and F.A. von Hayek (1944, 1945, 1964, 1973) strongly emphasised on the impossibility of socialism and the superiority of a free market versus public interventionism. Both highlighted their conviction that central planning cannot be more efficient than a spontaneous order, since knowledge is dispersed (Hayek) and tacit (Polanyi). Although both shared very similar concerns in regards to economic matters, they did not always come to the same conclusions. Thus, also the differences between Polanyi’s and Hayek’s concepts will be discussed, such as Polanyi’s emphasis on defending subsystems as the basic units of society, and his focus on maximizing “public freedom”. Both came to different conclusions in regards to the institutional character of science, and even concluded somewhat differently on the character of knowledge. Most importantly, they developed different concepts on political economy and the ideal role of the State. Moreover, this paper will consider the impact of M. Polanyi on the concept of polycentricity and on the ideas of Elinor Ostrom, while also referring to the different understanding of the role of the State in the ideas of F.A. Hayek compared to other Austrian School economists, such as Murray N. Rothbard. In addition, the paper pretends to historically analyse the emergence of the term ‘spontaneous order’, showing that it is not the product of one mind’s design, but the consequence of the thoughts of several great minds, such as Carl Menger, Ludwig von Mises, F.A. von Hayek, Michael Polanyi, Walter Eucken, and Wilhelm Röpke. Keywords: liberalism, libertarianism, capitalism, Austrian school of economics, interventionism, collectivism, spontaneous order, dynamic efficiency, free market economy, polycentricity, catallactics, extended order, tacit knowledge, dispersed knowledge, F.A. Hayek, Michael Polanyi JEL Classification: A12, B10, B13, B25, H10, H40, K11, P10, P14, P16, P26, P48, P51 Resumen: Este artículo evalúa y compara los principales pensamientos económicos y filosóficos de las dos grandes mentes liberales Michael Polanyi y Friedrich A. von Hayek con respecto al concepto del orden espontáneo. En sus obras principales, tanto Michael Polanyi (1941, 1948, 1951) como F.A. von Hayek (1944, 1945, 1964, 1973) destacaron fuertemente la imposibilidad del socialismo y la superioridad de un mercado libre versus el intervencionismo público. Ambos estaban convencidos de que la planificación central no puede ser más eficiente que un orden espontáneo, ya que el conocimiento es disperso (Hayek) y tácito (Polanyi). Aunque ambos compartían preocupaciones muy similares con respecto a los asuntos económicos, no siempre llegaron a las mismas conclusiones. Por lo tanto, también se discutirán las diferencias entre los conceptos de Polanyi y Hayek, como el énfasis de Polanyi en defender los sub-sistemas como unidades básicas de la sociedad y su enfoque en maximizar la “libertad pública”. Ambos llegaron a conclusiones diferentes con respecto al carácter institucional de la ciencia y al carácter del conocimiento. Además, este artículo considerará sus diferentes conceptos sobre economía política y el papel ideal del Estado, y analiza el impacto de M. Polanyi en el concepto de policentrismo y en las ideas de Elinor Ostrom. Por otra parte, el artículo pretende analizar históricamente la aparición del término “orden espontáneo”, mostrando que no es producto del diseño de una sola mente, sino la consecuencia de los pensamientos de varias grandes mentes, como Carl Menger, Ludwig von Mises, FA von Hayek, Michael Polanyi, Walter Eucken y Wilhelm Röpke. Palabras clave: liberalismo, libertarismo, capitalismo, escuela austriaca de economía, intervencionismo, colectivismo, orden espontáneo, eficiencia dinámica, economía de libre mercado, policentrismo, orden extendido, conocimiento tácito, conocimiento disperso, F.A. Hayek, Michael Polanyi Clasificación JEL: A12, B10, B13, B25, H10, H40, K11, P10, P14, P16, P26, P48, P51

scholarly journals The Menger-Mises Theory of the Origin of Money--Conjecture or Economic Law?

2019 ◽  
Vol 22 (1) ◽  
pp. 26-48 ◽  
Author(s):  
Kristoffer Hansen
Keyword(s):  
Economic Theory ◽  
Basic Principles ◽  
Austrian Theory ◽  
Ludwig Von Mises ◽  
Economic Law ◽  
Carl Menger ◽  
Conjectural History ◽  
Von Mises ◽  
Regression Theorem

In recent years some economists have begun to doubt the scientific standing of the standard Austrian theory of the origin of money. They seem to think that it is only one possible solution to the problem of accounting for money’s value. Of these economists, Gary North (North 2012b) has presented the most cogent counter-interpretation to how we should understand the theory of the origin of money as elaborated by Carl Menger and Ludwig von Mises. Unlike the rest of economic theory, the origin of money and Mises’s regression theorem do not partake of the character of a scientific law deduced from the basic principles of the science, but is rather, and is presented as such in the writings of Menger and Mises, what North terms “conjectural history.” In this essay we will respond to North’s challenge and to the economists who agree with him.

scholarly journals Hayek Marx: uma comparação extemporânea

2017 ◽  
Vol 5 (1) ◽  
pp. 43-82
Author(s):  
Ricardo Luis Chaves Feijó
Keyword(s):  
Karl Marx ◽  
Ludwig Von Mises ◽  
Carl Menger ◽  
Von Mises ◽  
Friedrich Hayek

O ensaio começa por examinar as bases dos pensamentos de Karl Marx e Friedrich Hayek, nessa ordem. No primeiro caso, remete-se ao debate filosófico na Prússia, na passagem dos séculos XVIII e XIX, em especial apresenta-se uma síntese da reflexão do filósofo Hegel. Segue então a exposição sintética do sistema de Marx. Em Hayek, examinam-se as influências que se exerceram sobre ele de autores austríacos como Ludwig von Mises e Carl Menger, para, em seguida, detalhar a teoria da ordem espontânea e a teoria conexionista da mente. Após o estudo das bases do legado de Marx e Hayek, segue a estratégia de confrontar-se os dois sistemas de pensamento. Para tanto, oferece-se uma comparação sistemática entre elas. Na seção conclusiva, a mesma contraposição de ideias é tratada por meio de um quadro sinóptico comentado.

scholarly journals Sobre as Origens do Bitcoin:

2016 ◽  
Vol 4 (1) ◽  
pp. 121-139
Author(s):  
Konrad S. Graf
Keyword(s):  
Ludwig Von Mises ◽  
Carl Menger ◽  
Von Mises

Nesta obra, o autor desenvolve um estudo econômico e histórico da origem do Bitcoin e de seu valor enquanto moeda. Em sua argumentação, o autor explora a relação entre a moeda digital Bitcoin e a Economia Austríaca, discutindo, em particular, o Teorema da Regressão de Ludwig von Mises e sua conexão com a evolução do mercado monetário, bem como a abordagem evolutiva seminal de Carl Menger.

Libertarians I

Just Property ◽  
2020 ◽  
pp. 58-80
Author(s):  
Christopher Pierson
Keyword(s):  
Private Property ◽  
Natural Rights ◽  
Robert Nozick ◽  
Personal Freedom ◽  
Ludwig Von Mises ◽  
Milton Friedman ◽  
Herbert Spencer ◽  
Von Mises ◽  
Friedrich Hayek

This chapter begins with a brief discussion of what we mean by libertarianism. I explore the ways in which the forerunners of contemporary libertarianism came to justify a regime of minimally constrained individual private property, (often) grounded in natural rights and instantiating the maximum of personal freedom. Key thinkers in this respect are Herbert Spencer, Ludwig von Mises, Milton Friedman, and Friedrich Hayek. Murray Rothbard is a figure who belongs more unambiguously to modern libertarianism. The chapter ends with a substantial discussion of the debate that has surrounded the work of Robert Nozick in Anarchy, State and Utopia. I suggest that Nozick is a much more ambivalent figure for libertarianism than is usually supposed.

Comment on Horwitz's Article

1996 ◽  
Vol 18 (2) ◽  
pp. 308-313 ◽  
Author(s):  
Allin Cottrell
Keyword(s):  
Government Intervention ◽  
Austrian Economics ◽  
Neoclassical Economics ◽  
Economic Calculation ◽  
Market System ◽  
Neoclassical Theory ◽  
Ludwig Von Mises ◽  
Alternative Approaches ◽  
Von Mises ◽  
Friedrich Hayek

Austrian economics is arousing increasing interest, not to say enthusiasm, these days. No doubt this is in part due to the collapse of the planned economies of the Soviet type, which has lent credibility to the claims of Ludwig von Mises and Friedrich Hayek regarding the impossibility of rational economic calculation under socialism-claims which were disputed by the mainstream neoclassical economists of a generation ago. The phenomenon also reflects a relatively long-standing dissatisfaction with neoclassical economics. For many years it was the radical critics of capitalism who felt most keenly the attractions of alternative approaches in economics. Now, increasingly, champions of the market are coming to believe that neoclassical theory does not offer a deep and firm enough basis for asserting the virtues of the market system, and the counterproductive effects of government intervention therein.

scholarly journals El mito del nuevo “Management” público.

2009 ◽  
Vol 9 (25) ◽  
Author(s):  
Omar Guerrero
Keyword(s):  
Public Choice ◽  
James Buchanan ◽  
Ludwig Von Mises ◽  
Von Mises ◽  
Friedrich Hayek

La nueva gerencia publica es una vision privatizadora de lo publico, cuyo origen se encuentra en el pensamiento economico neoclasico de la escuela Austriaca. Dos de sus inspiradores principales son Ludwig von Mises y Friedrich Hayek. A esa corriente pensamiento hay que añadir la opcion publica (public choice) de la Escuela de Virginia, representada por economistas estadounidenses destacados, como James Buchanan. Lleva por nombre la voz gerencia managementro pero no es la gerencia su fundamento sino la empresa mercantil. Aqui tiene su origen las propuestas a favor de establecer mercados intra-estatales y orientar al gobierno hacia el consumidor, asi como introducir el espiritu empresarial en el gobierno y desarrollar los principios de la competencia en la provision de los bienes y servicios publicos. En fin, aunque ostenta como apellido el vocablo publica, sus propositos y resultados se encaminan a la privatizacion del Estado. En suma: la nueva gerencia publica entraña como principio primigenio vital, la renuncia al gobierno politico, adaptandose por hacer una gestion economica.

Money before coinage. History of pre-columbian currency

2021 ◽  
pp. 411-427
Author(s):  
Rafael Antonio Rivera Solórzano
Keyword(s):  
Economic Theory ◽  
Great Part ◽  
Human Interaction ◽  
Spontaneous Order ◽  
Austrian School ◽  
Austrian School Of Economics ◽  
Monetary System ◽  
Commodity Money ◽  
History Of ◽  
Carl Menger

It’s well known that Carl Menger, one the most remarkable con-tributors on economic theory, and father of the Austrian School of Economics, devoted a great part of his career to research money origins. According to his studies, money, just as language and eco-nomics came from a spontaneous order, otherwise known as a creation of human interaction, yet not of human design. This means that money didn’t originate from a decree, neither was an invention of a king or governor, but it comes from the regular com-munication between individuals, to satisfy a need. Needless to be said, the necessity of exchange has continuously been present on mankind; facilitating the satisfaction of the infinite human desires. Yet coinage was not present in humanity until the VIth century B.C. in Europe and XVth century A.C. in America1 when Spaniards arrived. Then how could civilizations without a well-developed coinage system progress? The purpose of this paper is to prove and show how the Mayan monetary system could work with-out a coinage system, and how efficient this civilization was solving problems commonly found in barter and commodity money, which were their leading means in commerce.

Ludwig von Mises's approach to capital as a bridge between Austrian and institutional economics

2016 ◽  
Vol 12 (4) ◽  
pp. 847-866 ◽  
Author(s):  
EDUARD BRAUN ◽  
PETER LEWIN ◽  
NICOLÁS CACHANOSKY
Keyword(s):  
Institutional Economics ◽  
Austrian School ◽  
Ludwig Von Mises ◽  
Carl Menger ◽  
Von Mises

AbstractLudwig von Mises seems to be something of an outlier within the Austrian school when it comes to capital – though his position is clearly foreshadowed in a neglected article by Carl Menger (1888). In this paper, we examine Mises's view on capital and suggest that it constitutes a bridge between Austrian and institutional economics. As an outflow of Mises's approach, an incipient financial approach may be discerned, an approach to capital that integrates concepts from financial theory into a broader view of capital that contains both institutional and Austrian elements.

scholarly journals Mises e Hayek Desomogeneizados

2014 ◽  
Vol 2 (2) ◽  
pp. 651-676 ◽  
Author(s):  
Joseph T. Salerno
Keyword(s):  
Ludwig Von Mises ◽  
Carl Menger ◽  
Von Mises

Desde seu renascimento no início dos anos 1970, o que veio a se chamar de “Economia Austríaca” tem sido considerado, pela maior parte de seus adeptos contemporâneos, como a continuação de uma tradição unificada que pode ser rastreada até Carl Menger. Este artigo desafia essa perspectiva e argumenta que, de fato, duas tradições muito diferentes emergiram do trabalho de Menger. Uma tradição pode ser rastreada, através da obra de F. A. Hayek, a Friedrich Wieser, um dos dois seguidores mais proeminentes de Menger. A outra tradição emana dos escritos do outro discípulo principal de Menger, Eugen von Böhm-Bawerk, e inclui seu aluno Ludwig von Mises. Este ensaio defende a tese de que essas duas tradições separadas existem e foram confundidas pelos austríacos modernos.

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