The Oxford Handbook of Austrian Economics

Co-edited with Christopher J. Coyne

The Austrian School of Economics is an intellectual tradition in economics and political economy dating back to Carl Menger in the late-19th century. Menger stressed the subjective nature of value in the individual decision calculus. Individual choices are indeed made on the margin, but the evaluations of rank ordering of ends sought in the act of choice are subjective to individual chooser. For Menger, the economic calculus was about scarce means being deployed to pursue an individual's highest valued ends. The act of choice is guided by subjective assessments of the individual, and is open ended as the individual is constantly discovering what ends to pursue, and learning the most effective way to use the means available to satisfy those ends. This school of economic thinking spread outside of Austria to the rest of Europe and the United States in the early-20th century and continued to develop and gain followers, establishing itself as a major stream of heterodox economics. 


The Oxford Handbook of Austrian Economics provides an overview of this school and its theories. The various contributions discussed in this book all reflect a tension between the Austrian School's orthodox argumentative structure (rational choice and invisible hand) and its addressing of a heterodox problem situations (uncertainty, differential knowledge, ceaseless change). The Austrian economists from the founders to today seek to derive the invisible hand theorem from the rational choice postulate via institutional analysis in a persistent and consistent manner. Scholars and students working in the field of History of Economic Thought, those following heterodox approaches, and those both familiar with the Austrian School or looking to learn more will find much to learn in this comprehensive volume.


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Table of Contents

1. Introduction

Peter Boettke and Christopher Coyne 



2. Austrian Methodology: A Review & Synthesis
Adam Martin 



3. The Knowledge Problem
Lynne Kiesling 


4. Market Theory and the Price System
Frederic Sautet 


5. Austrians Versus Market Socialists
Jesús Huerta de Soto 


6. Spontaneous Order
Daniel D'Amico 



7. The Capital Using Economy
Peter Lewin and Howard Baetjer 


8. Capital-Based Macroeconomics: Austrians, Keynes, and Keynesians
John P. Cochran 


9. Austrian Business Cycle Theory: A Modern Appraisal
Andrew Young


10. Free Banking
Kevin Dowd 



11. Social Economy as an Extension of the Austrian Research Program
Emily Chamlee-Wright and Virgil Storr 


12. Organizations and Markets
Nicolai J. Foss, Peter G. Klein, and Stefan Linder 


13. The Evolution of Property Rights Systems
Bruce Benson 


14. On the Origins of Stock Markets
Edward Stringham



15. The Rule of Experts
Roger Koppl 


16. The Problem of Rationality: Austrian Economics between Classical Behaviorism and Behavioral Economics

Mario Rizzo 


17. Dynamics of Interventionism
Sanford Ikeda 



18. Ordoliberalism and the Austrian School
Stefan Kolev


19. The Tax State as Source of Perpetual Crisis
Richard Wagner 


20. Constitutional Political Economy and Austrian Economics
Mark Pennington 


21. Public Choice and Austrian Economics
Randall Holcombe 


22. The Market Process Theory Perspective of Capitalism: Normative Facets and Implications
Paul Dragos Aligica



23. On the Economy Wide Implications of Kirznerian Alertness
Maria Minnitti 


24. Contemporary Austrian Economics and the New Economic Sociology
Ryan Langrill and Virgil Storr 


25. The Austrian Theory of Finance: Is It a Unique Contribution to the Field?
Gregory Dempster 


26. Austrian Economics and the Evolutionary Paradigm
Ulrich Witt and Naomi Beck


27. Complexity and Austrian Economics
J. Barkley Rosser 


28. The Sensory Order, Neuroeconomics and Austrian Economics
Bill Butos and Thomas McQuade


29. What Have we Learned from the Collapse of Communism?
Peter Boettke and Olga Nicoara 


30. The Political Economy of Foreign Intervention
Thomas K. Duncan and Christopher Coyne


31. From Subsistence to Advanced Material Production: Austrian Development Economics
G.P. Manish and Benjamin Powell 


32. On Your Mark, Get Set, Develop! Leadership and Economic Development
Scott A. Beaulier and Daniel J. Smith 


33. The Financial Crisis in the United States
Steven Horwitz


34. The Financial Crisis in the UK: Uncertainty, Calculation and Error
Anthony J. Evans