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“The other side of the argument”: Isaiah Berlin versus F. A. von Hayek on liberty, public policies, and the market

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  • Athanassios Pitsoulis
  • Steffen Groß

Abstract

The present paper is concerned with the nexus between the different dimensions of liberty, public policies, and the market mechanism. We argue that in order to evaluate the performance of the market mechanism in promoting freedom comprehensively, both the opportunity and the process aspect of liberty must be taken into consideration. Depending on where the emphasis is laid, the achievements of the market mechanism and market interventions through government action in promoting liberty appear in a different light. Two authors have developed encompassing concepts of liberty that can be applied for such a purpose: Isaiah Berlin and F. A. von Hayek. We analyse where Berlin and Hayek are in disagreement and discuss how their different views result in directly conflicting policy preferences. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Athanassios Pitsoulis & Steffen Groß, 2015. "“The other side of the argument”: Isaiah Berlin versus F. A. von Hayek on liberty, public policies, and the market," Constitutional Political Economy, Springer, vol. 26(4), pages 475-494, December.
    • Handle: RePEc:kap:copoec:v:26:y:2015:i:4:p:475-494
    DOI: 10.1007/s10602-015-9193-3
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    References listed on IDEAS

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    1. Martinez-Vazquez,Jorge & Winer,Stanley L. (ed.), 2014. "Coercion and Social Welfare in Public Finance," Cambridge Books, Cambridge University Press, number 9781107636897.
    2. Vanberg, Viktor, 1986. "Spontaneous Market Order and Social Rules," Economics and Philosophy, Cambridge University Press, vol. 2(1), pages 75-100, April.
    3. Martinez-Vazquez,Jorge & Winer,Stanley L. (ed.), 2014. "Coercion and Social Welfare in Public Finance," Cambridge Books, Cambridge University Press, number 9781107052789.
    4. Sen, Amartya Kumar, 1970. "The Impossibility of a Paretian Liberal," Scholarly Articles 3612779, Harvard University Department of Economics.
    5. Dowding, Keith & Van Hees, Martin, 2007. "Counterfactual Success And Negative Freedom," Economics and Philosophy, Cambridge University Press, vol. 23(2), pages 141-162, July.
    6. Sen, Amartya, 1970. "The Impossibility of a Paretian Liberal," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 152-157, Jan.-Feb..
    7. Carter, Ian & Kramer, Matthew H., 2008. "How Changes In One'S Preferences Can Affect One'S Freedom (And How They Cannot): A Reply To Dowding And Van Hees," Economics and Philosophy, Cambridge University Press, vol. 24(1), pages 81-96, March.
    8. Sen, Amartya, 1993. "Markets and Freedoms: Achievements and Limitations of the Market Mechanism in Promoting Individual Freedoms," Oxford Economic Papers, Oxford University Press, vol. 45(4), pages 519-541, October.
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    More about this item

    Keywords

    Conceptions of liberty; Markets and liberty; F. A. von Hayek; Isaiah Berlin; A11; A13; B25; B31; B41; I18; I28;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • 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
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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