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What can complexity learn from Misesian economics?

Author

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  • Vicente Moreno-Casas

    (Texas Tech University
    Texas Tech University)

Abstract

This paper analyzes the work of Ludwig von Mises in search of commonalities with complexity economics. Alternatively to the literature on the links between Austrian economics and complexity economics, this paper shows that many elements of Misesian economics, such as the notion of entrepreneurship or the characterizations of uncertainty and the market process, can be appealing to a complexity approach. Moreover, it discusses two important implications that Misesian economics may have for complexity. On the one hand, the praxeological emphasis on human purposeful action, and how this is reflected in the notion of entrepreneurship, can help remind of the importance of human intentionality and prevent complexity advocates from producing explanations of the human world drawing on mere “blind” mechanisms. On the other hand, Mises’s works combining the equilibrium construct and a process-oriented perspective can inspire present complexity economics to answer relevant unresolved questions such as whether and to what extent equilibrium analysis should be employed.

Suggested Citation

  • Vicente Moreno-Casas, 2024. "What can complexity learn from Misesian economics?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 37(3), pages 267-291, September.
    • Handle: RePEc:kap:revaec:v:37:y:2024:i:3:d:10.1007_s11138-023-00620-4
    DOI: 10.1007/s11138-023-00620-4
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    More about this item

    Keywords

    Complexity economics; Ludwig von Mises; Praxeology; Market process; Uncertainty; Entrepreneurship;
    All these keywords.

    JEL classification:

    • 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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