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- Title
Austrian Economics, Neoclassicism, and the Market Test.
- Authors
Yeager, Leland B.
- Abstract
The article discusses economics, neoclassicism and the market test of Austrian economics. Austrians understand how useful institutions, including the market system itself, money, the common law, ethics, and language can evolve "spontaneously," by a kind of natural selection, rather than by conscious implementation of any overall design. Of course, individual participants in unplanned processes act rationally by their own lights. Austrians treat institutions not as givens that can be captured by a parameter or two in an economic model but rather as complex social arrangements whose evolution requires serious thought. Austrians recognize the time dimension in economic life. They take change, uncertainty, and unpredictability seriously not only in confronting theoretical and econometric models but also in assessing institutions and policies. They recognize that complex structures of heterogeneous capital goods reflect not only diverse and changeable consumption patterns and production processes but also diverse time horizons adopted in specific investment decisions.
- Subjects
AUSTRIA; AUSTRIAN economy; CONSUMPTION (Economics); ECONOMIC models; INVESTMENTS; INDUSTRIAL equipment
- Publication
Journal of Economic Perspectives, 1997, Vol 11, Issue 4, p153
- ISSN
0895-3309
- Publication type
Article
- DOI
10.1257/jep.11.4.153