The Austrian School and Market Equilibrium Theories

2012 ◽  
Author(s):  
Wassim Daher
2019 ◽  
pp. 103-123
Author(s):  
Agustina Borella

In the debate on realism of models in economics, the Austrian School and Hayek in particular, seem to have, in a certain way, remained outside. Assuming neoclassical models as unrealistic, the theory of the market as a pro- cess looks like a more realistic proposal. However, one of the fundamental issues in Hayek’s dissent is not so much the unrealism of the assumptions, but that the market equilibrium theory was not correctly raised, especially with regards to the perfect knowledge assumption. Despite this, in this setting and in line with a previous paper (Zanotti & Borella, 2015), we will argue that Hayek’s spontaneous order may be understood as the Austrian School’s «model», assuming Mäki’s MISS version of models (Models as Isolations and Surrogate Systems) and emphasizing the place of the ontological foundation of Hayek’s proposal when assessing his model. Keywords: Realism of models, Hayek, spontaneous order, MISS version, onto- logical foundation. JEL classification: B31, B40, B53. Resumen: En el debate sobre el realismo de los modelos en economía, la Escuela Austríaca y en particular Hayek, parece haber quedado en algún sen- tido afuera. Asumiendo a los modelos neoclásicos como irrealistas, la teoría del mercado como proceso parece presentarse como una propuesta más rea- lista. Sin embargo, uno de los puntos fundamentales en el disenso de Hayek no es tanto el irrealismo de los supuestos, sino que la teoría del equilibrio de mer- cado estaba mal planteada, especialmente en relación al supuesto de conoci- miento perfecto. A pesar de esto, en este encuadre y en línea con un trabajo anterior (Zanotti & Borella, 2015), mostraremos que el orden espontáneo de Hayek  puede  ser  entendido  como  «el  modelo»  de  la  Escuela  Austríaca, tomando la consideración MISS de los modelos de Mäki (Models as Isolations and Surrogate Systems) y destacando el lugar del fundamento ontológico de la propuesta de Hayek a la hora de evaluar su modelo. Palabras clave: Realismo de los modelos, Hayek, orden espontáneo, conside- ración MISS, fundamento ontológico. Clasificación JEL: B31, B40, B53.


2008 ◽  
pp. 31-45 ◽  
Author(s):  
S. Glazyev

The article critically considers basic postulates of quantity theory of money. It shows that they reflect the static state of the economy in abstract models of market equilibrium but do not prove true in actual economic processes. In contrast to monetarists’ view, prices can rise as well as fall even if other variables of the monetarist equation are stable. Thus it cannot be used for grounding monetary policy. The author comes to the conclusion on the dogmatism of Russian monetary authorities that seriously hinders the country’s economic development. He proposes to switch to market organization of money supply basing on regulation of the refinancing rate.


2017 ◽  
pp. 93-110 ◽  
Author(s):  
O. Anchishkina

The article synthesizes information on database analysis of state, municipal, and regulated procurement through which Russian contract institutions and the market model are investigated. The inherent uncertainty of quantity indicators on contracting activities and process is identified and explained. The article provides statistical evidence for heterogeneous market structure in state and municipal procurement, and big player’s dominance. A theoretical model for market behavior, noncooperative competition and collusion is proposed, through which the major trends are explained. The intrinsic flaws and failure of the current contracting model are revealed and described. This ineffectiveness is regarded to be not a limitation, but a challenge to be met. If responded to, drivers for economic growth and market equilibrium will be switched on.


2013 ◽  
Author(s):  
Ivo Družić ◽  
Ana Andabaka Badurina ◽  
Marija Penava

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