Econ 403 – 002 Enterprise Hall 275 Tuesday 1:30 - 4:10

Econ 403: Austrian

Instructor: Alexander W. Craig Office: Mercatus Suite, Buchanan Hall Email: [email protected] Office Hours: T 12:00-1:30, R 3:30-5:00, and by appointment

Required Texts

The only text required for this course which is not available either online or through the library website is Competition and Entrepreneurship by . I recommend the Liberty Fund version in the series edited by Boettke and Sautet.

The following is a list of other books we will draw from during the class. You are required to have copies of all readings in class, but you may use electronic versions which are available online for free.

• Human Action by • Individualism and Economic Order by • Capital and Its Structure by • Man, Economy, and State by • Time and Money by Roger Garrison (available online through the library) • Calculation and Coordination by (also available online through the library)

Other readings will include papers and other documents available through the library’s website or otherwise online.

Course Description

This course will examine the theoretical contributions of the of economics and its immediate influences. Through the examination of seminal works contributing to the Austrian school and secondary sources examining its significance, we will explore the insights from this important body of work. We will aim to understand the influence of the Austrian school on modern economics, what the Austrians have to offer mainstream economics today, and why the arguments the Austrians have made are significant in light of what they are attempting to establish and examine. Agreement with Austrian economists’ views will not be necessary to do well in the course but understanding and engaging with them will.

A typical class period will consist of two sections. The first will be an opening lecture on the subject of the class for that week examining the historical setting, arguments, and implications of the Austrian treatment of that week’s subject. A ten minute break will follow, and the remainder of the class will be devoted to a class discussion on the topic and readings for that week. Econ 403 – 002 Enterprise Hall 275 Tuesday 1:30 - 4:10 Evaluation and Grading

Your grade will come from the following sources and weightings:

In-class participation – 15% Reading reactions – 15% Midterm – 35% Final – 35%

I will drop one missed participation grade for each student. Additional absences will require documentation of the cause of absence to be excused.

Reading reactions will consist of reflections on the reading(s) for that week as listed on the reading schedule. In the reactions, students are to select a sentence or two from each reading, include it in their reflection, and make an argument for why the quoted passage is the “key” for “unlocking” the meaning of the selection from which it came. On weeks when selections from more than two sources are assigned students will only be required to reflect on two. The reactions should be 300-600 words per week (not per reading) in 12pt, double-spaced Times New Roman font. Reactions are due no less than 24 hours before the beginning of class on the day they are to be discussed.

The midterm and final exams will be take-home free response assignments consisting of a list of questions to be answered in essays. Students will have at least one week to complete each exam.

All out of class assignments may be turned in late for 50% credit at any point in the course. Lost participation points will be impossible to make up.

In-class expectations

-Electronic Devices The use of electronic devices in the classroom is allowed during this course for the purpose of using digital copies of the assigned readings. There are professors at GMU whose policy is to take off points from the people sitting next to anyone whose cell phone goes off during class. I have not made this my policy, but I ask that you return the courtesy by not using your electronic devices in a manner that is distracting to me or your fellow students. If your technology does become a distraction to others, I will ask you to leave the classroom for the remainder of that class period.

-Attendance Attending class will be necessary to obtain participation points, and students will be responsible for knowing all information covered in the lectures.

-Syllabus This syllabus will function like the constitution for our class. I will do my best to adhere to the schedule and expectations contained herein. However, I reserve the right to modify it as necessary. Econ 403 – 002 Enterprise Hall 275 Tuesday 1:30 - 4:10 University Requirements

-Honor Code Mason is an Honor Code university; please see the Office for Academic Integrity for a full description of the code and the honor committee process. The principle of academic integrity is taken very seriously and violations are treated gravely. Academic integrity means, essentially, when you are responsible for a task you will perform that task. When you rely on someone else’s work in an aspect of the performance of that task, you will give full credit in the proper, accepted form. Another aspect of academic integrity is the free play of ideas. Vigorous discussion and debate are encouraged in this course with the firm expectation that all aspects of the class will be conducted with civility and respect for differing ideas, perspectives, and traditions. When in doubt (of any kind) please ask for guidance and clarification.

-Communication and Privacy Students must use their MasonLive email account to receive important University information, including communications related to this class. I will not respond to messages sent from or send messages to a non-Mason email address. This is to fulfill the legal requirements of the Family Educational Rights and Privacy Act (FERPA).

-Accommodation If you are a student with a disability and you need academic accommodations, please see me and contact Disability Services http://ds.gmu.edu. All academic accommodations must be arranged through Disability Services and should be arranged early in the semester.

Econ 403 – 002 Enterprise Hall 275 Tuesday 1:30 - 4:10 Schedule

Week Date Topic Readings

1 Jan 22 Overview

2 Jan 29 Methodology pt. 1 Human Action pages 11-23, 30-69

Individualism and Economic Order chapter 3, “The Facts of the Social Sciences”

3 Feb 5 Methodology pt. 2 “Was Mises Right?” by Peter Leeson and Peter Boettke, Review of Social Economy, vol. LXIV, no. 2, June 2006

Individualism and Economic Order chapter 2, “Economics and Knowledge”

Individualism and Economic Order chapter 3, “The 4 Feb 12 Spontaneous order Use of Knowledge in Society”

Individualism and Economic Order chapter 5, “The Meaning of Competition”

5 Feb 19 Entrepreneurship Competition and Entrepreneurship chapters 1, 2

6 Feb 26 Competition Competition and Entrepreneurship chapters 3, 4

7 Mar 5 Capital theory Capital and Its Structure chapters 1, 2, 4

8 Mar 12 Spring break

Econ 403 – 002 Enterprise Hall 275 Tuesday 1:30 - 4:10

Midterm Due

“Economic Calculation in the Socialist Economic Commonwealth” by Ludwig von Mises 9 Mar 19 calculation Calculation and Coordination chapter 3, “Economic Calculation: The Austrian Contribution to Political Economy”

“On the Origin of Money” by , The Economic Journal, vol. 2, no. 6, June 1892 10 Mar 26 Macro pt. 1 Time and Money chapter 3, “Capital-based ”

Time and Money chapter 4, “Sustainable and Unsustainable Growth”

11 Apr 2 Macro pt. 2 “Time and Money: The Universals of Macroeconomic Theorizing” by Roger Garrison, Journal of Macroeconomics, vol. 6, issue 2, spring 1984

“Institutional Stickiness and the New Development Economics” by Peter Boettke, Christopher Coyne, and Peter Leeson, American Journal of 12 Apr 9 Institutions Economics and Sociology, vol. 67, no. 2, April 2008

“Assume Anarchy” by Raghuram Rajan

Human Action pages 855-61 13 Apr 16 Interventionism Man, Economy, and State pages 875-914

Econ 403 – 002 Enterprise Hall 275 Tuesday 1:30 - 4:10

“Liberalism, Socialism, and Robust Political Economy” by Peter Boettke and Peter Leeson, Journal of Markets and Morality, vol. 7, no. 1, Spring 14 Apr 23 Political economy 2004

Calculation and Coordination chapter 2, “Why are there no Austrian Socialists?”

“The Market as a Social Space: On the Meaningful Extraeconomic Conversations that Can Occur in Markets” by Virgil Henry Storr, Review of Austrian Economics, vol. 21, nos. 2 & 3, 2008 Economic 15 Apr 30 sociology “Discovery and Social Learning in Non-Priced Environments: An Austrian View of Social Network Theory” by Emily Chamlee-Wright and Justus A. Myers, Review of Austrian Economics, vol. 21, issue 2, 2008

16 May 7 Reading day

17 May 14 Final exam time Final exam due