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The Methodology of Austrian Economics and Its Relevance to Institutionalism
Author(s) -
Gunning J. Patrick
Publication year - 1986
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1986.tb01904.x
Subject(s) - teleology , positive economics , institution , meaning (existential) , relevance (law) , a priori and a posteriori , epistemology , institutionalism , austrian school , causality (physics) , methodological individualism , economics , sociology , economic model , neoclassical economics , social science , law , political science , philosophy , macroeconomics , physics , quantum mechanics , politics
A bstract . The methodology of Austrian economics's presented in the writings of Ludwig von Mises is described. The Misesian system is built on a priori categories (choice, causality, teleology, time, uncertainty) which Mises regarded as common to all human actors. He used these categories to describe how theories of social phenomena must be constructed if they are to be comprehensible to others. To interpret history , including economic history , one must invent models based on subsidiary assumptions and he or she must make bypotheseszbom the specific “intentions and expectations” of actors. One model is that of an “economic institution.” The meaning of the Misesian model of an institution is stated. It is said to have much in common with the models of phenomenologicai sociology. Finally, contrary to recent papers in this J ournal , it is argued that (1) Misesian a priori categories are not alternatives to a priori assumptions described by institutionalists, (2) although a pure theory of choice does not lend itself to the evaluation of public policy , hypotheses about specific intentions and expectations do permit such evaluations, and (3) statements by Mises on institutions and the study of history resemble those made by many institutionalists.