Austrian school

(redirected from Austrian economist)

Austrian School

A school of economics that argues that human behavior is so complex it is extremely difficult or impossible to model. For that reason, it promotes deductive, as opposed to inductive, reasoning in its analysis. It is an extremely individualist school, advocating laissez faire policies and opposing all or nearly all government interventions in the economy. The Austrian School, and particularly its rejection of modeling, has faced criticism from both right- and left-leaning economists. It is so named because most of its founders were born in or around Austria. See also: Ludwig von Mises.

Austrian school

a group of late 19th-century economists at the University of Vienna who established and developed a particular line of theoretical reasoning. The tradition originated with Professor Carl Menger who argued against the classical theories of value, which emphasized PRODUCTION and SUPPLY. Instead, he initiated the ‘subjectivist revolution’, reasoning that the value of a good was not derived from its cost but from the pleasure, or UTILITY, that the CONSUMER can derive from it. This type of reasoning led to the MARGINAL UTILITY theory of value whereby successive increments of a commodity yield DIMINISHING MARGINAL UTILITY.

Friedrich von Wieser developed the tradition further, being credited with introducing the economic concept of OPPORTUNITY COST. Eugen von Böhm-Bawerk helped to develop the theory of INTEREST and CAPITAL, arguing that the price paid for the use of capital is dependent upon consumers’ demand for present CONSUMPTION relative to future consumption. Ludwig von Mises and Friedrich von Hayek subsequently continued the tradition established by Carl Menger et al. See also CLASSICAL ECONOMICS.

References in periodicals archive ?
The Keynesians could claim a lineal descent from the Fabians of the 1880s, who had first advanced practical collectivist measures for the redistribution of wealth by the state guarantee of a |national minimum for all', whereas the economic liberals owed their intellectual inspiration not only to the original |laissez-faire' economists such as Adam Smith, but also to the Austrian economist, Ludwig Von Mises, the first great modern critic of Socialism.
Schumpeter, an Austrian economist, was contemporaneous with John Maynard Keynes, who overshadowed Schumpeter, although today Keynes is largely discredited and Schumpeter is undergoing a modest revival.
Further, the conceptual tools of hermeneutics prove to be indispensable for understanding real-life economies as an Austrian economist. In order to see why he makes this twofold claim, it is important to understand his intellectual heritage as an Austrian economist--especially as it pertains to the theories about human reasoning.
Although he does not mention Mises in the article, one suspects that he might have had the great Austrian economist in mind when he wrote, "[N]o a priori empirical truths can exist in any field.
The name of this free-market economic school acknowledges the fact that many of the school's "founding fathers" were Austrian nationals and disciples of the Austrian economist Karl Menger.
The University of Chicago Press produced a complete collection of work by Austrian economist Hayek (1899-1992) during the 1990s, and Liberty Fund is reprinting the volumes in paper editions.
The opposition to Schmoller was led by Austrian economist Carl Menger, who made the case for economic theory, outlining what he claimed was the essential and universal nature of economic choice: the relation between a person's needs and the goods that might satisfy those needs.
Why would an Austrian economist transition from analyzing marriage breakdown to praising "free-range" kids?
As Mark Blaug puts it in his comment: "Robbins was throughout all the interwar years the greatest and indeed the only Austrian economist outside Austria, having neither trained nor taught in Austria." Jeremy Shearmur would like to see a more powerful theory of welfare in order to do justice to Mises's and Hayek's arguments for markets, but it remains unclear what kind of welfare theory he exactly has in mind.
By the emphasis on spontaneous order and the view upon prices (seen as systems of information storing) the Austrian economist can righteously be considered a predecessor of the complexity theory in economics.
Governance and mergers are not intrinsically linked, but are both major interests of Austrian economist Dennis C.

Full browser ?