Book Reviews

2015 ◽  
Vol 53 (1) ◽  
pp. 119-121
Keyword(s):  
Business Cycles ◽  
Austrian Economics ◽  
Austrian School ◽  
Market Process ◽  
Florida State University ◽  
State University ◽  
Economic Calculation ◽  
The Core

Roger W. Garrison of Auburn University reviews “Advanced Introduction to the Austrian School of Economics”, by Randall G. Holcombe. The Econlit abstract of this book begins: “Provides an introduction and summary of the core principles, ideas, and diversity of modern Austrian economics. Discusses the market process; decentralized knowledge—the role of firms and markets; economic calculation; money, banking, and business cycles; and the resurgence of the Austrian school. Holcombe is DeVoe Moore Professor of Economics at Florida State University.”

Book Reviews

2010 ◽  
Vol 48 (2) ◽  
pp. 460-462
Keyword(s):  
Ultimatum Game ◽  
Associate Professor ◽  
Florida State University ◽  
State University ◽  
Economic Implications ◽  
Coordination Problems ◽  
Trust And Reciprocity ◽  
The University

David J. Cooper of Florida State University reviews “Experiments in Economics: Playing Fair with Money” by Ananish Chaudhuri,. The EconLit Abstract of the reviewed work begins “Presents an overview of economic experiments, focusing on those that explore the role of fairness, generosity, trust, and reciprocity in economic transactions. Discusses the ultimatum game; trust and trustworthiness in everyday life; cooperation in social dilemmas; resolving coordination problems in organizations; and further economic implications of fairness and trust. Chaudhuri is Associate Professor of Economics at the University of Auckland. Bibliography; index.”

scholarly journals Vínculos entre la Escuela Austriaca de Economía y el método de la inversión en valor

2021 ◽  
pp. 255-304
Author(s):  
Diego E. Quijano Durán
Keyword(s):  
Common Sense ◽  
Jel Classification ◽  
Austrian School ◽  
Economic Calculation ◽  
Austrian School Of Economics ◽  
Value Investing ◽  
Palabras Clave ◽  
The World ◽  
The Common

The Austrian school of economics and the investment method known as value investing have a similar conception of the world, so that it is possible to find multiple links between them and form a coherent structure. To the economist, this allows for a much deeper understanding of the entrepreneurial function and the manner in which economic calculation is actually performed. To the investor, it offers a theoretical framework that explains economic phenomena, permitting him to better understand the role of the entrepreneur and to protect his investment when dangerous patterns can be observed. In this essay, we begin from the common stance of both schools of thought towards common sense, the use of realistic assumptions, the importance of prudence and the low value of complex mathematics in the fields of economics and finance. We then proceed to develop in greater depth nine aspects that have strong philosophical and scientific links. Key words: Value investing, Austrian school of economics, entrepreneurship, dynamic efficiency, economic calculation. JEL Classification: A12, G17, M20. Resumen: La Escuela Austriaca de Economía y el método de inversión en valor tienen una concepción similar del mundo que permite entrelazarlas coherentemente. Al economista, le permite profundizar el conocimiento del ejercicio de la función empresarial y la realización del cálculo económico en la práctica. Al inversor, le ofrece un marco teórico para comprender mejor el papel del empresario y los fenómenos económicos y detectar temprano patrones peligrosos y así protegerse. En este trabajo partimos de la base de que ambas escuelas de pensamiento tienen sus raíces en el sentido común y los supuestos realistas, que son prudentes a la hora de ver el futuro y que dudan de la utilidad de las matemáticas complejas en los campos económicos y financieros. Sobre ello, desarrollamos nueve aspectos en los cuales hay fuertes conexiones como, por ejemplo, la manera en que el ejercicio de la empresarialidad mejora la eficiencia del mercado y coordina los planes de las personas. Palabras clave: Inversión en valor, escuela austriaca de economía, empre-sarialidad, eficiencia dinámica, cálculo económico. Clasificación JEL: A12, G17, M20.

scholarly journals La théorie autrichienne de la bureaucratie de Mises: une perspective critique

2021 ◽  
pp. 95-137
Author(s):  
Laurent Carnis
Keyword(s):  
Jel Classification ◽  
Market Process ◽  
Political Systems ◽  
Economic Calculation ◽  
Role Of The State ◽  
Théorie Économique ◽  
Definition Of ◽  
Traditional Approaches ◽  
Premiere Partie

The bureaucratic organisations became key actors in our contemporary societies. To develop an appropriate theory to understand how these organisations work and their implications constitute true stakes. This article deals with Mises’ theory of bureaucracy, which differs radically from the traditional approaches. The first part presents the definition of the Misesian bureaucracy, which shares some common points with Wéber’s version and shows also true strong disagreements. The absence of economic calculation constitutes the main key idea to understand the Misesian theory. Mises shows also that bureaucracy reflects the governmental interventions, which can be combined with different types of political systems. The second part deals with the consequences of bureaucracy. This part proposes a detailed analysis of the economic, social, political and psychological effects. The third part raises some critical points for the theory. It seems that the conception of bureaucrat and its place inside the bureaucratic organisation is not sufficiently analysed. Moreover, the modelling of the bureaucratic expansion deserves a more refined research. Finally, the justifications given by Mises to justify a minimal bureaucracy emphasize the necessity to think the place and the role of the State. Keywords: Bureaucracy, economic calculation, market process, minimal government. JEL Classification: D73 H11 L38 P11 P21. Résumé: Compte tenu de place importante que prend désormais l’organisation étatique au sein des sociétés contemporaines, l’élaboration d’une théorie économique de la bureaucratie s’avère essentielle pour en comprendre à la fois les mécanismes de fonctionnement et les implications. Cet article revient sur la contribution de Mises, qui par ses travaux, permet d’offrir une réelle alternative aux approches traditionnelles.La première partie de cette contribution présente la théorie de Mises en soulignant ses spécificités par rapport à la conception défendue par Wéber, dont à la fois elle s’inspire et s’en écarte substantiellement. L’absence du calcul économique dans le processus d’allocation des ressources représente une dimension essentielle pour comprendre la théorie proposée. Mises démontre également que l’organisation bureaucratique s’accommode aisément des différents régimes politiques et reflète l’intervention généralisée de l’Etat. La deuxième partie concerne les conséquences de la bureaucratie. Mises distingue quatre effets: les effets économiques, sociaux, politiques et psychologiques. Chaque catégorie fait l’objet d’une présentation détaillée. La troisième partie soulève des points critiques du modèle de la bureaucratie de Mises. Ainsi, sa conception du bureaucrate et sa place au sein de l’organisation bureaucratique nous paraissent faire l’objet d’une élaboration insuffisante. Les mécanismes de l’expansion bureaucratique méritent également un raffinement de l’analyse, tandis que la justification avancée d’une bureaucratie minimale soulève la question de l’existence d’un Etat minimal. Mots clés: Bureaucratie, calcul économique, processus de marché, Etat minimal.

Austrian Economics, Market Process, and the EVA® Framework

2017 ◽  
Vol 12 (s1) ◽  
Author(s):  
Nicolás Cachanosky
Keyword(s):  
Economic Value ◽  
Profit Maximization ◽  
Value Added ◽  
Austrian Economics ◽  
Market Process ◽  
Economic Value Added ◽  
Austrian Literature ◽  
Financial Framework ◽  
Firm Profit

Abstract:In this paper I present a financial framework, known as Economic Value Added or EVA®, used to value firms and apply it to topics highlighted in the Austrian literature. In particular I contrast the market process emphasis in the Austrian literature with the neoclassical firm profit maximization and the role of Kirzner’s

The Financial Crisis in the United Kingdom

2015 ◽  
pp. 748-780
Author(s):  
Anthony J. Evans
Keyword(s):  
United Kingdom ◽  
Financial Crisis ◽  
Business Cycles ◽  
Moral Hazard ◽  
Empirical Evidence ◽  
Austrian Economics ◽  
Institutional Factors ◽  
The United Kingdom ◽  
Epistemic Function

This chapter looks at the role of ignorance rather than incentive explanations (such as moral hazard) to explain the financial crisis in the United Kingdom. It uses empirical evidence to suggest that economic explanations should allow scope for the possibility of clusters of errors and explores the institutional factors that can create them. Specific attention is given to the concepts of regime uncertainty and big players, and how they accelerated the crisis. The epistemic function of prices is also discussed, as is the importance of calculation and recalculation during periods of financial turmoil. The chapter attempts to demonstrate that contemporary Austrian economics can provide important contributions to our understanding of business cycles—both in theory and in practice.

scholarly journals For a less dramatic creative destruction

2019 ◽  
Vol 7 (3) ◽  
Author(s):  
Fernando D'Andrea ◽  
João Fernando Mazzoni
Keyword(s):  
Market Economy ◽  
Creative Destruction ◽  
Current Approach ◽  
Process Approach ◽  
Austrian School ◽  
Market Process ◽  
Future Research ◽  
The Core ◽  
Competitive Environments ◽  
Entrepreneurial Role

Innovation is at the core of any market economy and it is necessary for any organization to survive in competitive environments. This article aims to discuss the current approach to innovation seen in most of the management and economics literature and it will suggest that this understanding, loosely based on Schumpeter’s ideas on creative destruction, is not capable of representing the actual dynamism seen in the markets. In order to better understand that dynamism, the market process approach of the Austrian School is presented as a substitute. The comparison indicates that adopting the market process approach, in which entrepreneurship and innovation are endogenous and not-necessarily related to breaks or shocks, leads to a much better understanding of the innovation phenomena and, consequently, and opens new paths in the understanding of the entrepreneurial role. The work concludes presenting limitations and suggestions for future research in management, and economics, and finally, some pedagogical suggestions are also given.

scholarly journals Organizations and Markets

2015 ◽  
pp. 271-295 ◽  
Author(s):  
Nicolai J. Foss ◽  
Pierre Klein ◽  
Stefan Linder
Keyword(s):  
Recent Literature ◽  
Theory Of The Firm ◽  
Austrian Economics ◽  
Economic Calculation ◽  
Austrian Theory ◽  
New Directions ◽  
Over Time ◽  
Structure Of Production

Austrian economics focuses on markets but has much to say about organizations. In particular, Austrian insights on the structure of production, the heterogeneity and subjectivity of resources, the nature of uncertainty, the role of monetary calculation, and the function of the entrepreneur provide solid foundations for a distinctly Austrian theory of organizations. This chapter reviews these insights, discusses recent literature on Austrian economics and the theory of the firm, and suggests new directions for developing and extending an Austrian approach to organizations. In doing so it answers the following questions: Why, do organizations, large and small, emerge and persist? How do they avoid the problem of economic calculation faced by socialist economies? Why do organizations take the shapes they do, why do their characteristics vary over time and across industries, and why do they succeed or fail? Are most organizations stable over time, or do organizations, like markets, adapt and learn? and How do entrepreneurs arrange assets and manage individuals within organizations?

scholarly journals Time, Capital, and Technological Progress in the Austrian School of Economics

2019 ◽  
Vol 57 (1) ◽  
pp. 123-144
Author(s):  
Robert W. Ciborowski ◽  
Aneta Kargol-Wasiluk ◽  
Marian Zalesko
Keyword(s):  
Driving Force ◽  
Technological Progress ◽  
Capital Outlay ◽  
Austrian School ◽  
Entrepreneurial Activity ◽  
Economic Calculation ◽  
Austrian School Of Economics ◽  
Economic Reality ◽  
Main Protagonist

Abstract The article investigates the significance of time, the nature of capital, and the role of technological progress in economic processes. The presented analysis of the three economic categories makes use of the theoretical achievements of notable representatives of the Austrian School of Economics, for whom a creative entrepreneur was the main protagonist of the interactions taking place in the economy. The above-mentioned economic categories, taken together, are for him the foundation of human activity. The time factor is of great importance for man – individuals constantly analyse historical events so as to attain success in contemporary economic reality, and in the future. Capital is the basis for economic calculation, which underpins all entrepreneurial activity. Technological progress, which happens in time and requires considerable capital outlay, is the driving force of economic growth.

The Oxford Handbook of Austrian Economics

2015 ◽  
Keyword(s):  
Political Economy ◽  
Rational Choice ◽  
Austrian Economics ◽  
Invisible Hand ◽  
Spontaneous Order ◽  
Austrian School ◽  
Market Process ◽  
Late Nineteenth Century ◽  
Business Cycle Theory ◽  
Capital Theory

The Oxford Handbook of Austrian Economics provides an overview of the main methodological, analytical, and practical implications of the Austrian school of economics. This intellectual tradition in economics and political economy has a long history that dates back to Carl Menger in the late nineteenth century. The various contributions discussed in this book all reflect this "tension" of an orthodox argumentative structure (rational choice and invisible hand) to address heterodox problem situations (uncertainty, differential knowledge, ceaseless change).The Austrian economists, from the founders to today, seek to derive the invisible-hand theorem from the rational-choice postulate via institutional analysis in a persistent and consistent manner. The Handbook, which consists of nine parts, and 34 chapters, covers a variety of topics including: methodology, microeconomics (market process theory and spontaneous order), macroeconomics (capital theory and Austrian business cycle theory, and free banking), institutions and organizational theory, political economy, development and social change, and the 2008 financial crisis. The goals of the volume are twofold. First, to introduce readers to some of the main theories and insights of the Austrian school. Second, to demonstrate how Austrian economics provides a set of tools for making original and novel scholarly contributions to the broader economics discipline. By providing insight into the central Austrian theories, the volume will be valuable to those who are unfamiliar with Austrian economics. At the same time, it will be appealing to those already familiar with Austrian economics, given its emphasis on Austrian economics as a live and progressive research program in the social sciences.

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