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 ?
Those dialogues between the planning committee, its musicologists, and David Luft, Katherine Arens, and me (representing diverse strands of Austrianist scholarship in the U.
Personally, I like to think that in every Germanist there lurks a hidden Austrianist.
Not only are "German" departments shrinking and disappearing in areas of the country where German heritage is receding into historic memory, but a great number of the major Austrianists who made this area of study significant within Germanistik have either retired or continue to practice at liberal arts colleges or regional campuses of state universities, where they influenced generations of students but yielded no PhD students.
This situation also has implications for the training and scholarly habits of future Austrianists.
These German programs all too often forget that Austrianists have several fins de siecle to deal with, and all as rich as Carl Schorske's internationally identifiable one, as some scholars now point out.
Furthermore, the Austrianist group described above had the entire foundation of their ideology, the multiethnic Austrian state, cut out from under them, rendering their vision of a Jewry as one ethnic group among many in a diverse society no longer feasible.
Fully fledged Austrianists might most enjoy the last essay in the collection.