The Microfoundations of Austrian Economics through a New Classical Theoretical Lens

This paper is an attempt to contribute to the microfoundations debate by discussing the distinctive methodological characteristics of the Austrian school, and how they relate to different conceptions of equilibrium and general equilibrium models. Further, we shall focus on one specific branch of the...

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Published inReview of political economy Vol. 28; no. 1; pp. 113 - 133
Main Authors Evans, Anthony J., Aligica, Paul Dragos
Format Journal Article
LanguageEnglish
Published London Routledge 01.01.2016
Taylor & Francis Ltd
Subjects
Austria
Austrian economics
Economic models
Economic theory
Markets
microfoundations
New Classical School
Austria
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Abstract This paper is an attempt to contribute to the microfoundations debate by discussing the distinctive methodological characteristics of the Austrian school, and how they relate to different conceptions of equilibrium and general equilibrium models. Further, we shall focus on one specific branch of the Austrian school (those who see markets as exhibiting equilibrating tendencies) and one specific branch of neoclassical economics (the New Classical School) to highlight some hitherto overlooked points of tangency. Indeed, we shall use the monetary theories of Hayek and Lucas to argue that the limitations of New Classical models may lead to Austrian solutions.
AbstractList This paper is an attempt to contribute to the microfoundations debate by discussing the distinctive methodological characteristics of the Austrian school, and how they relate to different conceptions of equilibrium and general equilibrium models. Further, we shall focus on one specific branch of the Austrian school (those who see markets as exhibiting equilibrating tendencies) and one specific branch of neoclassical economics (the New Classical School) to highlight some hitherto overlooked points of tangency. Indeed, we shall use the monetary theories of Hayek and Lucas to argue that the limitations of New Classical models may lead to Austrian solutions.
This paper is an attempt to contribute to the microfoundations debate by discussing the distinctive methodological characteristics of the Austrian school, and how they relate to different conceptions of equilibrium and general equilibrium models. Further, we shall focus on one specific branch of the Austrian school (those who see markets as exhibiting equilibrating tendencies) and one specific branch of neoclassical economics (the New Classical School) to highlight some hitherto overlooked points of tangency. Indeed, we shall use the monetary theories of Hayek and Lucas to argue that the limitations of New Classical models may lead to Austrian solutions. Reprinted by permission of Routledge, Taylor & Francis Ltd.
Author Aligica, Paul Dragos
Evans, Anthony J.
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  organization: George Mason University
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SubjectTerms Austria
Austrian economics
Economic models
Economic theory
Markets
microfoundations
New Classical School
Title The Microfoundations of Austrian Economics through a New Classical Theoretical Lens
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