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On Austrian regional economics

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Author Info

  • Wim Heijman

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  • Auke Leen

    ()

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    Abstract

    The aim of this research note is two-fold, firstly, to clarify the growing interaction between regional science and Austrian economics and their awareness of each other. We elucidate the Austrian methodology, called praxeology, which is especially misunderstood in regional science. Secondly, we tentatively sketch a possible contribution of Austrian economics to regional science. The core of the new economic geography is the idea of external economies of scale. Agglomeration of firms often leads to lower costs of existing products, and is a stimulating environment for the invention of new products and the development of new ideas. Austrian economics, which places discovery at the centre of its analysis of the market process, should be able to explain why (public) regional investments may be unsuccessful and why they can be successful. Copyright Springer-Verlag Berlin/Heidelberg 2004

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    Bibliographic Info

    Article provided by Springer in its journal Papers in Regional Science.

    Volume (Year): 83 (2004)
    Issue (Month): 2 (04)
    Pages: 487-493

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    Handle: RePEc:spr:presci:v:83:y:2004:i:2:p:487-493

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    Web page: http://link.springer.de/link/service/journals/10110/index.htm

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    Related research

    Keywords: Austrian economics; methodology; regional science; regional policy;

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    Cited by:
    1. Palmberg, Johanna, 2013. "Spontaneous Orders and the Emergence of Economically Powerful Cities," Working Paper Series in Economics and Institutions of Innovation 310, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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