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Austrian economics at the cutting edge

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  • R. Koppl

Abstract

Austrian economists today have a valuable opportunity to rejoin the mainstream of the economics profession. As Colander, Holt, and Rosser have argued, neoclassical orthodoxy is no long mainstream. What I call the “heterodox mainstream” is an emerging new orthodoxy. The five leading characteristics of the emerging new orthodoxy are bounded rationality, rule following, institutions, cognition, and evolution. When listed in this order, they suggest the acronym BRICE. The Austrian school is also an example of BRICE economics. The shared themes of BRICE economics create an opportunity for intellectual exchange between Austrians and other elements of the heterodox mainstream. Although Austrians should engage the heterodox mainstream energetically, they should also defend the essential elements of an early version of neoclassical economics, elements at risk of becoming half-forgotten themes of an earlier era. These elements are supply and demand, marginalist logic, opportunity-cost reasoning, and the elementary theory of markets. Copyright Springer Science + Business Media, LLC 2006

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  • R. Koppl, 2006. "Austrian economics at the cutting edge," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(4), pages 231-241, December.
    • Handle: RePEc:kap:revaec:v:19:y:2006:i:4:p:231-241
    DOI: 10.1007/s11138-006-9246-y
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    2. Troy Tassier, 2013. "Handbook of Research on Complexity, by J. Barkley Rosser, Jr. and Edward Elgar," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(1), pages 132-133.
    3. Hartwell, Christopher A., 2018. "The “Hierarchy of Institutions” reconsidered: Monetary policy and its effect on the rule of law in interwar Poland," Explorations in Economic History, Elsevier, vol. 68(C), pages 37-70.
    4. Eduardo Angeli, 2018. "Caminhos da Escola Austríaca: relação com ortodoxia, engajamento e produção de novo conhecimento [Paths of the Austrian School: its relationship with orthodoxy, engagement and production of new knowle," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 28(2), pages 681-704, May-Augus.
    5. Steven E. Phelan, 2016. "Austrian theories of entrepreneurship: Insights from complexity theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(3), pages 277-297, September.
    6. Robin Douhan & Gunnar Eliasson & Magnus Henrekson, 2007. "Israel M. Kirzner: An Outstanding Austrian Contributor to the Economics of Entrepreneurship," Small Business Economics, Springer, vol. 29(1), pages 213-223, June.
    7. Sandye Gloria, 2018. "Menger contre Walras," Post-Print hal-01797323, HAL.
    8. Vicente Moreno-Casas, 2023. "The Harvard-MIT complexity approach to development and Austrian economics: Similarities and policy implications," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(4), pages 515-539, December.
    9. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    10. David Colander & Richard Holt & J. Rosser, 2007. "Live and dead issues in the methodology of economics," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 30(2), pages 303-312.
    11. Thierry Aimar, 2009. "The curious destiny of a heterodoxy: The Austrian economic tradition," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 22(3), pages 199-207, September.
    12. Christopher A. Hartwell, 2017. "Understanding “Development”: Insights from Some Aspects of Complexity Theory," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 34(2), pages 165-190, November.
    13. Stephan Boehm, 2013. "Reflections on The economics of time and ignorance coming of age," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(1), pages 7-15, March.
    14. Minniti, Maria & Lévesque, Moren, 2008. "Recent developments in the economics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 603-612, November.
    15. Vicente Moreno‐Casas & Philipp Bagus, 2022. "Dynamic efficiency and economic complexity," Economic Affairs, Wiley Blackwell, vol. 42(1), pages 115-134, February.
    16. Gilles Campagnolo & Gilbert Tosi, 2016. "Organic Views on Institutions: Has Carl Menger Anticipated Complex Adaptive Systems? [La conception organique des institutions de Carl Menger a-t-elle anticipé ce qu’est un système adaptatif comple," Post-Print hal-01446223, HAL.
    17. J. Barkley Rosser, 2014. "Natural Selection versus Emergent Self-Organization in Evolutionary Political Economy," Advances in Austrian Economics, in: Entangled Political Economy, volume 18, pages 67-91, Emerald Group Publishing Limited.
    18. Rosser, J. Barkley, 2012. "Emergence and complexity in Austrian economics," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 122-128.
    19. Michele Di Maio, 2013. "Are Mainstream and Heterodox Economists Different? An Empirical Analysis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(5), pages 1315-1348, November.
    20. Richard Arena & Lauren Larrouy, 2015. "The Role of Psychology in Austrian Economics and Game Theory: Subjectivity and Coordination," GREDEG Working Papers 2015-15, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    21. Daniel J. Smith, 2023. "Austrian economics as a relevant research program," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(4), pages 501-514, December.
    22. David Colander, 2009. "“What is so Austrian about Austrian Economics?”," Middlebury College Working Paper Series 0910, Middlebury College, Department of Economics.
    23. Antonio Doria, Francisco, 2011. "J.B. Rosser Jr. , Handbook of Research on Complexity, Edward Elgar, Cheltenham, UK--Northampton, MA, USA (2009) 436 + viii pp., index, ISBN 978 1 84542 089 5 (cased)," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 196-204, April.
    24. Jamie Morgan & Ioana Negru, 2012. "The Austrian perspective on the global financial crisis: a critique," Economic Issues Journal Articles, Economic Issues, vol. 17(2), pages 27-55, September.
    25. Guinevere Nell, 2010. "Competition as market progress: An Austrian rationale for agent-based modeling," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(2), pages 127-145, June.

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