Austrian school


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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 ?
They relocated to Vienna where Vogel went to an Austrian school. Eventually, the family moved permanently to Lviv.
"Overdue are measures to produce more equal opportunities in the Austrian school, so that every child can come to a suitable education," says the AK education expert.
The Ascot Stakes can go to Archie Watson's Ulster, who had little chance against Austrian School last time out and will be better off in this company.
As Mekong and Austrian School dropped away, it was between Raheen House, having his first start for William Haggas, and Gold Mount, who powered away to win by two and a quarter lengths at 16-1.
At York, MEKONG (right) is expected to confirm his Sandowsuperiority Austrian School landing the Listed Sky Bet Race To The Ebor Grand Cup (3.00).
The son of Farhh might just have too much speed for last year's winner Magic Circle and stablemates Making Miracles and Austrian School.
CONNECTIONS believe Austrian School has a "favourite's chance" as he bids to give trainer Mark Johnston his first victory in the Sportpesa Chester Cup today.
He had the choice and went with Austrian School, it wasn't easy and it would have been hard to get off Watersmeet and even Making Miracles "We've got four good bullets at it, but the draw is very influential, even over that trip.
With that in mind Mark Johnston's Austrian School (stall five) and the Andrew Balding-trained Cleonte (one) rate the chief dangers to Shabeeb's hopes of success.
Austrian School was an emphatic winner of the Queen's Cup at Musselburgh.
HE WILL do well to upstage his half-brother Tiger Roll, but Austrian School kept family fortunes in the ascendancy as he seized the biggest purse of the day in Britain by landing the PS100,700 Queen's Cup.
Austrian School can pass the stamina examination that is the Queen's Cup Stakes with flying colours at Musselburgh.

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