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Testing Austrian Business Cycle Theory? A Second Rejoinder To Andrew Young

Author

Listed:
  • Robert P. Murphy

    (Mises Institute)

  • William Barnett II

    (Loyola University New Orleans)

  • Walter E. Block

    (Loyola University New Orleans)

Abstract

Young (2005) attempted to test Austrian Business Cycle Theory (ABCT). Murphy, Barnett and Block (hence, MBB, 2009) criticized Young (2005) on the ground that his model failed on its own terms. MBB (2009) found significantly different parameter estimates using the same data as did Young (2005). Beyond these serious objections, there is the more fundamental difficulty that Young’s approach, even if conducted flawlessly, would still be an improper “test” of ABCT. Young (2010) is a response to MBB (2009). The present paper is a rejoinder to Young (2010). We argue that Young (2010) was not an adequate response to MBB (2009) for the following reasons: tba

Suggested Citation

  • Robert P. Murphy & William Barnett II & Walter E. Block, 2012. "Testing Austrian Business Cycle Theory? A Second Rejoinder To Andrew Young," Romanian Economic Business Review, Romanian-American University, vol. 7(3), pages 7-20, September.
    • Handle: RePEc:rau:journl:v:7:y:2012:i:3:p:7-20
    as

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    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/FA12/REBE-FA12-A1.pdf
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    References listed on IDEAS

    as
    1. Hoppe Hans-Hermann, 1991. "Austrian Rationalism In The Age Of The Decline Of Positivism," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 2(2-3), pages 1-26, June.
    2. Buchanan, James M., 1979. "Cost and Choice," University of Chicago Press Economics Books, University of Chicago Press, number 9780226078182, September.
    3. Milton Friedman, 2001. "Friedman on Friedman," Rivista di storia economica, Società editrice il Mulino, issue 1, pages 127-132.
    4. William N. Butos & Roger G. Koppl, 1995. "The Varieties of Subjectivism: Keynes and Hayek on Expectations," Method and Hist of Econ Thought 9505001, University Library of Munich, Germany, revised 17 May 1995.
    5. Murray N. Rothbard, 1997. "The Logic of Action One," Books, Edward Elgar Publishing, number 968.
    6. Roger W. Garrison, 2004. "Overconsumption and Forced Saving in the Mises-Hayek Theory of the Business Cycle," History of Political Economy, Duke University Press, vol. 36(2), pages 323-349, Summer.
    7. Andrew Young, 2011. "Illustrating the importance of Austrian business cycle theory: A reply to Murphy, Barnett, and Block; A call for quantitative study," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(1), pages 19-28, March.
    8. Don Bellante & Roger W. Garrison, 1988. "Phillips Curves and Hayekian Triangles: Two Perspectives on Monetary Dynamics," History of Political Economy, Duke University Press, vol. 20(2), pages 207-234, Summer.
    9. repec:ucp:bkecon:9780226320625 is not listed on IDEAS
    10. Young, Andrew T., 2005. "Reallocating labor to initiate changes in capital structures: Hayek revisited," Economics Letters, Elsevier, vol. 89(3), pages 275-282, December.
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    Cited by:

    1. William Luther & Mark Cohen, 2014. "An Empirical Analysis of the Austrian Business Cycle Theory," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(2), pages 153-169, June.

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