Hayek and the Departure from Praxeology
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Violence Cycle Theory Will Be Introduced in Analogy to the Praxeological Business Cycle Theory (According to Ludwig Von Mises)
The VOL. 19 | NO. 4 | 330–344 QUArtERLY WINTER 2016 JOURNAL of AUSTRIAN ECONOMICS THE PRAXEOLOGY OF COERCION: A NEW THEORY OF VIOLENCE CYCLES RAHIM TAGHIZADEGAN AND MARC-FELIX Otto ABSTRACT: As the first application of the praxeological discipline of “Cratics” (Taghizadegan and Otto, 2015), a theory of the supply and demand of bads is developed. On this foundation, a violence cycle theory will be introduced in analogy to the praxeological business cycle theory (according to Ludwig von Mises). Central to this approach are the subjective perceptions of threats and possible bluffs regarding the backing of those threats. Such a violence cycle theory can explain the stability of structures of violence and reveal new interpretations of the “long peace” hypothesis. KEYWORDS: Austrian school, praxeology, catallactics, coercion JEL CLASSIFICATION: B53 hose actions and things which render a marginal utility to men can be described as goods. In analogy, those actions and things Twhich cause to expect a “marginal disutility” can be described as bads. Catallactics, i.e., the economics of direct and indirect Rahim Taghizadegan ([email protected]) is director of the academic research institute Scholarium (scholarium.at) in Vienna, Austria, lecturer at several univer- sities and faculty member at the International Academy of Philosophy in Liech- tenstein. Marc-Felix Otto ([email protected]) is equity partner at the consulting firm The Advisory House in Zürich, Switzerland. Both authors would like to thank the research staff at the Scholarium for their help and input. 330 Rahim Taghizadegan and Marc-Felix Otto: The Praxeology of Coercion… 331 exchange, can describe the process of the interaction of men who mutually promise and transfer goods to each other. -
FALL 2015 Journal of Austrian Economics
The VOL. 18 | NO. 3 | 294–310 QUArtERLY FALL 2015 JOURNAL of AUSTRIAN ECONOMICS PRAXEOLOGY OF COERCION: CATALLACTICS VS. CRATICS RAHIM TAGHIZADEGAN AND MARC-FELIX Otto ABSTRACT: Ludwig von Mises’s most important legacy is the foundation and analysis of catallactics, i.e. the economics of interpersonal exchange, as a sub-discipline of praxeology, the science of human action. In this paper, based both on Mises’s methodical framework and on insights by Tadeusz Kotarbinski and Max Weber, a “praxeology of coercion,” or, more precisely, an analysis of interpersonal actions involving threats, is developed. Our investigation yields both a reviewed taxonomy of human action and a first analysis of the elements of this theory, which we term cratics. This shall establish the basis for adjacent studies, furthering Mises’s project regarding the science of human action. KEYWORDS: Austrian school, praxeology, catallactics, coercion JEL CLASSIFICATION: B53 Rahim Taghizadegan ([email protected]) is director of the academic research institute Scholarium (scholarium.at) in Vienna, Austria, lecturer at several univer- sities and faculty member at the International Academy of Philosophy in Liech- tenstein. Marc-Felix Otto ([email protected]) is equity partner at the consulting firm The Advisory House in Zurich, Switzerland. Both authors would like to thank the research staff at the Scholarium for their help and input, in particular Johannes Leitner and Andreas M. Kramer. 294 Rahim Taghizadegan and Marc-Felix Otto: Praxeology Of Coercion… 295 INTRODUCTION he Austrian economist Ludwig von Mises intended to re-establish economics on a deductive basis, with the subjective Tvaluations, expectations, and goals of acting humans at the center, following the tradition of the “Austrian School” (see Mises, 1940 and 1962). -
Praxeology As Law & Economics
Journal of Libertarian Studies Volume 18, no. 2 (Spring 2004), pp. 73Ð89 2004 Ludwig von Mises Institute www.mises.org PRAXEOLOGY AS LAW & ECONOMICS Josef Sima* [The law] has acted in a way contrary to its own end; it has destroyed its own object: it has been employed in abolishing the justice which it was supposed to maintain, in effacing that limit between rights which it was its mis- sion to respect, it has put the collective force at the service of those who desire to exploit, without risk and without scruple, the person, liberty, or property of others; it has converted plunder into a right, in order to protect it, and legitimate defense into a crime, in order to punish it. How has this perversion of the law been accomplished? What have been the consequences of it? Ð FrŽdŽric Bastiat1 The law & economics movement has become one of the most dynamic schools within economics. Its origin is often dated back to the University of Chicago in the 1950s and 1960s, but insights about the interconnections of economics and the law can be found in the works of earlier economists. OLDER APPROACHES TO LAW & ECONOMICS Despite this contemporary idea that the law & economics move- ments started in the 1950s, older scholarly works touched upon the problem of economics and the law, and make cases for other scholars *Deputy Department Chair, Department of Economic Policy, Prague Univer- sity of Economics; and Director for Publications, Liberalni Institut, Prague, Czech Republic. [email protected]. 1FrŽdŽric Bastiat, The Law, in FrŽdŽric Bastiat, Selected Essays on Political Economy (Irvington-on-Hudson, N.Y.: Foundation for Economic Education, 2001), p. -
Liberty, Property and Rationality
Liberty, Property and Rationality Concept of Freedom in Murray Rothbard’s Anarcho-capitalism Master’s Thesis Hannu Hästbacka 13.11.2018 University of Helsinki Faculty of Arts General History Tiedekunta/Osasto – Fakultet/Sektion – Faculty Laitos – Institution – Department Humanistinen tiedekunta Filosofian, historian, kulttuurin ja taiteiden tutkimuksen laitos Tekijä – Författare – Author Hannu Hästbacka Työn nimi – Arbetets titel – Title Liberty, Property and Rationality. Concept of Freedom in Murray Rothbard’s Anarcho-capitalism Oppiaine – Läroämne – Subject Yleinen historia Työn laji – Arbetets art – Level Aika – Datum – Month and Sivumäärä– Sidoantal – Number of pages Pro gradu -tutkielma year 100 13.11.2018 Tiivistelmä – Referat – Abstract Murray Rothbard (1926–1995) on yksi keskeisimmistä modernin libertarismin taustalla olevista ajattelijoista. Rothbard pitää yksilöllistä vapautta keskeisimpänä periaatteenaan, ja yhdistää filosofiassaan klassisen liberalismin perinnettä itävaltalaiseen taloustieteeseen, teleologiseen luonnonoikeusajatteluun sekä individualistiseen anarkismiin. Hänen tavoitteenaan on kehittää puhtaaseen järkeen pohjautuva oikeusoppi, jonka pohjalta voidaan perustaa vapaiden markkinoiden ihanneyhteiskunta. Valtiota ei täten Rothbardin ihanneyhteiskunnassa ole, vaan vastuu yksilöllisten luonnonoikeuksien toteutumisesta on kokonaan yksilöllä itsellään. Tutkin työssäni vapauden käsitettä Rothbardin anarko-kapitalistisessa filosofiassa. Selvitän ja analysoin Rothbardin ajattelun keskeisimpiä elementtejä niiden filosofisissa, -
Economic Calculation and the Limits of Organization
Economic Calculation and the Limits of Organization Peter G. Klein conomists have become increasingly frustrated with the text- book model of the firm. The "firm" of intermediate microeco- Enomics is a production function, a mysterious "black box" whose insides are off-limits to respectable economic theory (relegated instead to the lesser disciplines of management, organization theory, industrial psychology, and the like). Though useful in certain contexts, the textbook model has proven unable to account for a variety of real- world business practices: vertical and lateral integration, geographic and product-line diversification, franchising, long-term commercial contract- ing, transfer pricing, research joint ventures, and many others. As an al- ternative to viewing the firm as a production function, economists are turning to a new body ofliterature that views the firm as anorganization, itself worthy of economic analysis. This emerging literature is the best- developed part of what has come to be called the "new institutional eco- nomics."' The new perspective has deeply enhanced and enriched our un- derstanding of firms and other organizations, such that we can no longer agree with Ronald Coase's 1988 statement that "[wlhy firms exist, what determines the number of firms, what determines what firms do . are not questions of interest to most economists" (Coase 1988a, p. 5).The new theory is not without its critics; Richard Nelson (1991), for example, ob- jects that the new institutional economics tends to downplay discretion- ary differences among firms. Still, the new institutional economics-in particular, agency theory and transaction cost economics-has been *Peter G. Klein is assistant professor of economics at the University of Georgia. -
Nine Lives of Neoliberalism
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Plehwe, Dieter (Ed.); Slobodian, Quinn (Ed.); Mirowski, Philip (Ed.) Book — Published Version Nine Lives of Neoliberalism Provided in Cooperation with: WZB Berlin Social Science Center Suggested Citation: Plehwe, Dieter (Ed.); Slobodian, Quinn (Ed.); Mirowski, Philip (Ed.) (2020) : Nine Lives of Neoliberalism, ISBN 978-1-78873-255-0, Verso, London, New York, NY, https://www.versobooks.com/books/3075-nine-lives-of-neoliberalism This Version is available at: http://hdl.handle.net/10419/215796 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative -
Ludwig Von Mises' Praxeology As Seen from a Business Ethics Angle
Wojciech W. Gasparski Human Action As An Ultimate Given: Ludwig Von Mises’ Praxeology As Seen From A Business Ethics Angle Studia Humana nr 5, 3-14 2013 Studia Humana Volume 2:1 (2013), pp. 3—14 Human Action As An Ultimate Given: Ludwig Von Mises’ Praxeology As Seen From A Business Ethics Angle Wojciech W. Gasparski Business Ethics Centre 1, Ko źmi ński University, Warsaw, Poland e-mail: [email protected] Abstract: Ludwig von Mises (1881 -1973) was one of the two parallel followers of the Espinas ’, a French scholar, human action theory; the other was Tadeusz Kotarbi ński (1886 -1981). The former was the founder of the Austrian praxeology considered as the aprioristic logic of action, and the latter originated the Polish prax iology considered as general methodology , i.e. epistemology of practice or grammar of action. This paper is intended to characterize the Mises ’ approach, closely related to his experience; therefore a number of important facts from the life of the Austrian praxeologist, economist a nd economics philosopher is summarized in the first part of the essay. According to Mises praxeological laws apply to the regularity of phenomena due to the correlations between means and ends which restricts people’s freedom of choice and action. Other re strictions of action have their source in physical laws, to which humans must adjust their behavior if they want to live, and physiological laws, i.e. a set of constitutive qualities characteristic of each individual, defining that individual’s disposition and susceptibility to environmental. Mises presented his theory in the book Human Action: A Treatise on Economics , over nine hundred pages long opus magnum that comprises forty chapters. -
The Foundations of Modern Austrian Economics Studies in Economic Theory Laurence S
í' The Foundations of Modern Austrian Economics Studies in Economic Theory Laurence S. Moss, Editor America's Great Depression, Murray N. Rothbard (1975) The Economics of Ludwig ron Mises: Toward a Critical Reappraisal, ed. Laurence S. Moss (1976) The Foundations ofModern ,dustrian Economics, ed. Edwin G. Dolan (1,976) The Economic Point of View, Israel M. Kirzner (1976) -,,.' The Foundations of Modern Austrian Economlcs Edited with an Introduction by Edwin G. Dolan SHEED & WARD, INC. Subsidiary of Univer-_L!Press Syndicate KansasCity This edition is cosponsored by the Institute for Humane Studies, Inc., Menlo Park, California. The Foundation_ of Modern dustrian Economics Copyright © 1976 by the Institute for Humane Studies Al ñghts reserved. Printed in the United States of America. No part of this book may be used or repro- duced in any manner whatsoever without written permission except in the case of reprints in the context of reviews. For information write Sheed & Ward, Ira:., 6700 Squibb Road, Mission, Kansas 6620"2. Library of Congress Cataloging in Publi¢ation Data Main entry under title: The Foundations of modern Austrian economics. (Studies in economic theory) Proce.edings of a con ference sponsored by the Insti- tute for Humane Studies and held at Royalton College, South Royalton, Vt., in June 1974. Bibliography: p. lncludes index. 1. Austrian school of economists -- Congresses. I. Dolan, Edwin G. II. Instítute for Humane Studies. I11. Series. HB98.F68 330'.09436 76-5894 ISBN 0-8362-0653-3 ISBN 0-8362-.0654-1 pbk. -g CONTENTS PREFACE vii PART 1 INTRODUCTION Austrian Economics as Extraordinary Science 3 Edwin G. -
Ludwig Von Mises's Praxeology As the Foundation of Christian Economic Personalism
STUDIES IN LOGIC, GRAMMAR AND RHETORIC 57 (70) 2019 DOI: 10.2478/slgr-2019-0001 Jacek Gniadek SVD Society of the Divine Word e-mail: [email protected] LUDWIG VON MISES’S PRAXEOLOGY AS THE FOUNDATION OF CHRISTIAN ECONOMIC PERSONALISM Abstract. What can an economist and agnostic tell a theologian about man? In contrast to mainstream economics, which today dominate all universities in the world, Ludwig von Mises (+1973) is interested in real man in action, not a fictitious homo oeconomicus. At one time Gregory M. A. Gronbacher (1998), an American philosopher, proposed a synthesis of Christian personalism with the free market economy developed by the Austrian School of Economics. His idea prompted me to use Mises’s praxeology to understand and describe human action in the socio-economic sphere from the perspective of Catholic Social Teaching. At that time I understood how important were economic laws for the proper moral evaluation of human action. Mises in his treaty on economics Human Action developed his own anthro- pological concept of man. The Austrian economist never used the expression “person” to describe and analyze human action, but analyzing his economic system I was able to discover that he did not understand the free market econ- omy as an abstract being composed of mechanical elements. According to him, the prerequisite for human activity is the desire to replace a less satisfactory state of affairs with a more satisfying one. Mises’s man is guided by his own scale of values and builds it up on the basis of a goal he freely chooses. -
Tensions Between Theory and History in Von Mises’S Critique of Socialism
Revista de Economia Contemporânea (2018) 22(2): p. 1-23 (Journal of Contemporary Economics) ISSN 1980-5527 http://dx.doi.org/10.1590/198055272221 elocation - e182221 www.ie.ufrj.br/revista | www.scielo.br/rec TENSIONS BETWEEN THEORY AND HISTORY IN VON MISES’S CRITIQUE OF SOCIALISM Emmanoel Boffa aProfessor da Universidade Federal Fluminense (UFF). Manuscript received on 2017/06/13 and accepted for publication on 2018/03/13.1 ABSTRACT: The article investigates the relation between praxeology and history in the critique Mises directs at the possibility of the long-term existence of a socialist commonwealth. We argue that Mises makes no clear distinction between the praxeological concept of 'private property' (associated with the possession of means of production) and the historical concept of the ideal-type 'private property' (associated to property rights – see HODGSON, 2015). The lack of precision between the theoretical and the historical concepts of private property prevents Mises’s critique from being an 'exact law', as he would have it. Finally, we show in the last section the consequences for Mises’s critique of socialism of having a historical and a praxeological concept of private property. KEYWORDS: Mises; socialism; socialist calculation; critique. JEL CODE: B13, B14, B15. Corresponding Author: Emmanoel Boff Contact: [email protected] All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution Rev. Econ. Contemp., v. 22, n. 2, p. 1 -23, mai./ago. 2018: e182221 1 DOI: 10.1590/198055272221 License. BOFF, E. Tensions between theory and history in von mises’s critique of socialism TENSÕES ENTRE TEORIA E HISTÓRIA NA CRÍTICA DE VON MISES AO SOCIALISMO RESUMO: O artigo investiga a relação entre a praxeologia e a história na crítica que von Mises dirige à possibilidade da existência de socialismo no longo prazo. -
Catallactics Misapplication: It Impact on Africa's Economy
Munich Personal RePEc Archive Catallactics misapplication: it impact on Africa’s economy Tweneboah Senzu, Emmanuel Bastiat Institute Ghana, Cape Coast Technical University, Banking Finance Dept., Economic Dept. Leicester University 20 July 2015 Online at https://mpra.ub.uni-muenchen.de/79548/ MPRA Paper No. 79548, posted 07 Jun 2017 05:33 UTC Catallactics misapplication: it impact on Africa’s economy Emmanuel Tweneboah Senzu [email protected] P a g e 1 | 34 1.0 ABSTRACT The paper seeks to solve the macroeconomic error that emerged from the dispensing of the monetary policy by the Central Banks of Africa. These monetary policies is unable to address the desired economic growth expected by individual developing and underdeveloped economies. It conclusively present a new mathematical model to determine the exact health status of an economy in developing and underdeveloped countries in Africa. Keywords: Monetary Economics, Monetary Policy, Fiscal Policy, Macroeconomics, Developmental Economics JEL Class.: E2-E23, E5-E51-E58, O2-O23 2.0 INTRODUCTION The research study and purpose of this paper is to contribute to the knowledge body of this faculty of studies and help improve on the error which emerged from the careless use of imaginary construction in the direct and indirect exchange activities of the market and it methodological application by the Central Banks in Africa to dispense their monetary policy. This result in fallacious economic predictions and policy constructions directed to the future of the market. The latter result, is the frustration of the employment of capital and labour for the development of the economy of Africa. Blanchard (2003) posited ‘Monetary policy can have large and long lasting effects on the real interest rates and the implication on activities.’ She further indicated that, in her Conference paper presented in honour of James Tobin at MIT School, which state that, “the large empirical literature based on structural VRA, suggests that the effect of an innovation in money on activity peaks after a year or so. -
Praxeology, Economics, and Law: Issues and Implications
PRAXEOLOGY, ECONOMICS, AND LAW: ISSUES AND IMPLICATIONS LARRY J. SECHREST raxeology has been described as a process of deducing correct, univer- sal, historically-invariant principles from one, or a few, axiomatic Ppropositions; that is, from propositions which are self-evidently true (Rothbard 1979, pp. 31–43; Hoppe 1995, pp. 7–27). The emphasis is on the subjective1 nature of individuals’ preferences and values, and on verbal rather than mathematical reasoning. It is an a priori method in that it claims not to rely on specific, concrete observations of external events, which observations then form the basis for quantitative tests of hypotheses. Instead, the praxeol- ogist makes extensive use of the fact that he, the analyst, is himself a member of the set of entities whose actions he wishes to examine and illuminate: indi- vidual human beings. Introspection and deductive logic would seem to be the centerpieces of the approach. The use of the following terms certainly can be misunderstood, but one can categorize a praxeologist as a rationalist rather than an empiricist (Hoppe 1995, pp. 27–48). Alternatively, one could say that the praxeological approach, in sharp con- trast to the much more common positivist/empiricist approach, recognizes that teleology and causality fold into one another insofar as human affairs are concerned. He who intentionally causes a particular result does so because he values it. The purposive actor, upon reflection, can find embedded within his actions both motivation and (psychological) justification, on the one hand, and causal relations between himself and the external environment, on the other. The praxeological method outlined above has long been considered a dis- tinctive, almost defining, feature of the Austrian School of economics.