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Expectation in Austrian business cycle theory: Market share matters

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  • Nicolas Cachanosky

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Abstract

One of the most important objections to the Mises-Hayek business cycle theory is the rational expectations critique. The debate between supporters and critics of the Mises-Hayek theory has not paid sufficient attention to the problem of differences in expectations and the market share in the allocation of production factors. I represent financially the effects that occur under the Austrian business cycle theory in the market of production factors as well as how economic imbalances occur when a central bank follows an expansionary policy and entrepreneurs have different expectations. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Nicolas Cachanosky, 2015. "Expectation in Austrian business cycle theory: Market share matters," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 28(2), pages 151-165, June.
  • Handle: RePEc:kap:revaec:v:28:y:2015:i:2:p:151-165
    DOI: 10.1007/s11138-014-0267-7
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    References listed on IDEAS

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    3. repec:kap:revaec:v:30:y:2017:i:2:d:10.1007_s11138-016-0340-5 is not listed on IDEAS
    4. Cachanosky, Nicolás & Lewin, Peter, 2016. "An empirical application of the EVA® framework to business cycles," Review of Financial Economics, Elsevier, vol. 30(C), pages 60-67.
    5. repec:eme:aaeczz:s1529-213420160000020002 is not listed on IDEAS
    6. repec:jpe:journl:1477 is not listed on IDEAS
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