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Lachmann’s transformation

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  • Fabio Barbieri

    (Universidade de São Paulo)

Abstract

This article analyzes the evolution of the thought of one of the leading economists of the Austrian school of economics, Ludwig Lachmann. We interpret that evolution, marked by his progressive skepticism about the effectiveness of the price system as part of the learning mechanism in markets, with the aid of a version of evolutionary epistemology. We argue that Lachmann´s earlier work on capital theory, derived from the Hayekian research program, is compatible with a fallibilistic or institutional theory of learning, while his mature view of the market as a kaleidoscope adopts a justificationist conception regarding the knowledge of economic agents and this conception is responsible for his skepticism regarding the usefulness of the concept of equilibrium.

Suggested Citation

  • Fabio Barbieri, 2023. "Lachmann’s transformation," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 36(3), pages 417-439, September.
    • Handle: RePEc:kap:revaec:v:36:y:2023:i:3:d:10.1007_s11138-021-00555-8
    DOI: 10.1007/s11138-021-00555-8
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    References listed on IDEAS

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    1. Lachmann, Ludwig M, 1976. "From Mises to Shackle: An Essay on Austrian Economics and the Kaleidic Society," Journal of Economic Literature, American Economic Association, vol. 14(1), pages 54-62, March.
    2. Peter Lewin, 1997. "Capital in Disequilibrium: A Reexamination of the Capital Theory of Ludwig M. Lachmann," History of Political Economy, Duke University Press, vol. 29(3), pages 523-548, Fall.
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    More about this item

    Keywords

    Lachmann; Radical subjectivism; Justificationism; Equilibrium;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian

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