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6 votes
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What are the primary differences between the Chicago and Austrian school of economics?

Before answering, I think it is worth while to slightly discuss what the schools of thought are and what they aren't. Schools of thought in economics refers to the methodological framework they prefer....
1muflon1's user avatar
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5 votes

How does the Austrian school address the free-rider problem for public goods like national defense?

Austrian School, as every other school including let's say Marxist School, as such is a set of methodologies not necessarily policy conclusions about what policies ought to be pursued (see Brue & ...
1muflon1's user avatar
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5 votes

Why is Mises "permitted" to define "Economics is an a priori science", if a priori is not trustworthy?

Although I disagree with von Mises, he was reacting to what he saw as a very real problem, which was the use of relatively primitive statistical methods to describe behavior. In fact, Leonard Jimmie ...
Dave Harris's user avatar
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5 votes

Where does capital come from?

Material capital is any durable good that is used as a factor of production and, by virtue of being durable, it is gradually consumed in production over a maximum possible duration of a length that is ...
אהרן רובין's user avatar
4 votes
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Austrian business cycle

As a disclaimer, I think the Austrian business cycle is incorrect. I will try to explain in a sympathetic fashion. Mises.org has a great deal of resources on Austrian economics, much of it free. From ...
Brian Romanchuk's user avatar
4 votes

What are the primary differences between the Chicago and Austrian school of economics?

People often ask me, "How are the Austrians different from the Chicago School economists? Aren't you all free market guys who oppose big-government Keynesians?" In the present article I'll ...
Giskard's user avatar
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3 votes

Austrian business cycle

I too also think the austrian theory of the business cycle is incorrect but will offer a sympathetic answer. It really about understanding how the theory related to the structure of production and how ...
EconJohn's user avatar
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3 votes
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Hayek's defense of competition regulation

This article states: In both of his seminal works in political theory, The Constitution of Liberty and Law, Legislation and Liberty, Hayek endorsed as a legitimate function of the ...
luchonacho's user avatar
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3 votes

How to make sense of so many conflicting theories and ideas in the field with an open mind? Is every school of economic thought as valid as the rest?

This is how I view it. At the very core of economics, is each and every human on this earth making decisions he or her thinks are in his or hers best interest. In real life, we do not calculate ...
hipHopMetropolisHastings's user avatar
2 votes

In Austrian theory, does constant, predicted deflation distort credit markets?

As with inflation, so long as deflation is expected, there is no distortion. The expected deflation is simply built into interest rates. For example, if I expect deflation to be 1% per year and I am ...
Antony Davies's user avatar
2 votes

Who first formulated the Political Business Cycle Theory?

The first scholar to model the intuition behind the political business cycle is William Nordhaus in a REStud article (1975). Nordhaus (1975) is thus widely believed to be the seminal article in the ...
egodig90's user avatar
2 votes

What are the known refutations of Mises' Axiom of Human Action?

I am asking whether or not it fully expounds some first cause of human action from which we can deduce answers to other questions about human economic behavior? What it is getting at: Praxeology ...
Conza's user avatar
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2 votes

How to make sense of so many conflicting theories and ideas in the field with an open mind? Is every school of economic thought as valid as the rest?

You've asked a rather broad question. In a way, what you've asked, is "how do we learn?" more than one tool for the job Do you believe in circular saws? Do you believe in handsaws? How can ...
410 gone's user avatar
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2 votes

Where does capital come from?

From a Marxist perspective, capital is a social relation. Essentially, it is money that begets more money. As such, it only becomes more or less synonim with "means of production" once it takes over ...
Luís Henrique's user avatar
1 vote

Where does value originate?

Where does value originate? Value originated in subjective preferences of an individual. This is both the modern mainstream economic theory and the theory that is also part of Austrian school, since ...
1muflon1's user avatar
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1 vote

Mutual gains from trade: did Smith come up with the idea or did Menger?

The concept of gains from trade did already existed in Smith. Blinder mentions that in the EconLib as well. You can also directly read it in the Wealth of Nations by Smith: It is the maxim of every ...
1muflon1's user avatar
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1 vote

Austrian vs Neoclassical arguments for a market economy

Austrian School and the Neoclassical School of economics is that the former has softer assumptions than the latter. Is this because the Austrian School has more of a "compare and contrast" ...
1muflon1's user avatar
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1 vote

Do Keyensians believe that it's wrong for households to aggresively save money?

The issue is more complex than your friend suggest and he is not completely right but at the same time there is a kernel of truth to what he is claiming. There are differences in the effect of savings ...
1muflon1's user avatar
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1 vote

Inflation leads to loss of gold reserves

Inflation won't necessarily change the price of goods from country B in real terms, but it will change the relative costs of buying goods from country B now vs saving now and buying goods from country ...
Angela Pretorius's user avatar
1 vote

Strong Austrian arguments against copyright

Copyright as a private contract is an entirely different thing than the concept of "intellectual property". While it is difficult to quote a single, unified view on the issue, I would think most ...
nondeterministic's user avatar
1 vote

Why are prices considered the best information we could have?

Prices are easy to observe. However, they do not contain information about externalities (or other market imperfections), so while they are the most commonly used source of information by consumers ...
nathanwww's user avatar
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1 vote

Why are prices considered the best information we could have?

Concerning austrians and their general attitude towards prices: https://mises.org/library/source-prices. In short Mises says that The ultimate source of the determination of prices is the value ...
JFugger_jr's user avatar
1 vote

What are the known refutations of Mises' Axiom of Human Action?

As with all the others, I would agree "no." I am only treating the first sentence as the axiom as the "corollary" implied in the second sentence is actually less clear. As the axiom I am taking it ...
Dave Harris's user avatar
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1 vote

What are the known refutations of Mises' Axiom of Human Action?

As a statement about human behaviour in general, it is a question of philosophy and psychology. However, economics is generally viewed as a study of decision-making, and not generic human behaviour. ...
Brian Romanchuk's user avatar
1 vote

What are the known refutations of Mises' Axiom of Human Action?

It doesn't allow for a full description of people's behavior and Mises says as much in Human Action. Data is needed as well. The Action Axiom simply states that people will select the best known means ...
John Vandivier's user avatar
1 vote

Literature on Private Countries

Murray Rothbard gave a "natural rights" justification for an AnCap society. David Friedman (son of Milton Friedman) discusses and gives a consequentialist defence for an Anarcho-Capitalist society. ...
softlibertarian's user avatar

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