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 ?
For those working within the Austrian school of economics, this straightforward lesson in methodology must always be followed when addressing inflation, unemployment, and industrial fluctuations.
Many economists, like Carl Menger (1840-1921), one of the founders of the Austrian school of economics, had expressed doubts about this conception of utility.
Most of their opponents subscribe to the Austrian school of economics, which is allergic to central banks' manipulating markets and asset values, and embraces the current trend.
com)-- The Mises Institute of Canada was founded in 2010 in order to spread the teachings of the Austrian School of Economics.
But according to a guiding principle of the Austrian School of Economics, called the subjective theory of value, something is worth what someone will pay for it (and what someone will accept for it).
Shenoy was in fact inclined towards the Austrian school of economics and possessed a strong understanding of economics.
It seems to describe proponents of the Austrian School of Economics, like Keynesian is used to describe devotees of John Maynard Keynes.
It Didn't Have to Be This Way: Why Boom and Bust Is Unnecessary--and How the Austrian School of Economics Breaks the Cycle, Harry C.
In order to follow his arguments it is also important to understand his newly introduced term "methodological individualist ethics," which he describes as an ethics that corresponds with one of the main methodological pillars of the Austrian School of economics, namely its methodological individualism (a term coined in 1908 by Joseph A.
I am known for criticizing both the Austrian School of economics and Milton Friedman's monetarist school.
A stalwart defender of the Austrian school of economics, Huerta de Soto (political economy, U.

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