Current debates between behavioural and orthodox economists indicate that the role and epistemological status of first principles is a particularly pressing problem in economics. As an alleged paragon of extreme apriorism, the methodology of Austrian economics in Mises’ tradition is often dismissed as untenable in the light of modern philosophy. In particular, the defence of the so-called fundamental axiom of praxeology—“Man acts.”—by means of pure intuition is almost unanimously rejected. However, in recently resurfacing debates, the extremeness of Mises’ epistemological position (...) has been called into question. Rather than directly engaging in these exegetical discussions, this paper aims to substantiate the possibility and plausibility of conventionalist defences of praxeology per se. The proposed shift includes settling for an analytic fundamental axiom and acknowledging the prima facie tenability of other research programs than praxeology. Since conventionalist praxeology is only moderately aprioristic, mainstream economists and philosophers might be more likely to engage in fruitful discussions with those Austrian scholars who elaborate pragmatic arguments for praxeology instead of invoking pure intuition. (shrink)

The concept of Intentional Action is at the core of Praxeology, as developed by the Austrian economist Ludwig von Mises. Under this unique approach, defined as the science of human action and designed to study the field of the social sciences, Mises create “action axiom”: the contention that every acting man more satisfactory state of affairs for a Austrian scholar is able to derive the fundament human action; such as value, scale of value, scarcity, abundance, profit, loss, uncertainty and causality, (...) among others. This paper intends to present the praxeological perspective on intentional action and its epistemologic implications; it also attempts to answer objections to this thesis. (shrink)

This essay is part of an attempt to reconcile two extreme views in economics: the (neglected) subjective, apriorist approach and the (standard) objective, scientific (i.e., falsifiable) approach. The Austrian subjective view of value, building on Carl Menger’s theory of value, was developed into a theory of economics as being entirely an a priori theory of action. This probably finds its most extreme statement in Ludwig von Mises’ Human Action (1949). In contrast, the standard economic view has developed into making falsifiable (...) predictions about economic phenomena whereby the truth of the assumptions, especially about economic agents, is relatively unimportant: predictive fecundity is all. This finds an extreme statement in Milton Friedman’s introductory essay in his Essays in Positive Economics (1953). However, many economists fall somewhere between the two extremes, such as McKenzie and Tullock (1978). (shrink)

ABSTRACT: The economists of the Austrian School count among the most consistent supporters of methodological individualism, but they were for the most part strongly opposed to clearly anti-holist trends such as constructivism, reductionism, and positivism. This article discusses why the sort of methodological individualism defended by the Austrians could not, for interconnected reasons, be rendered compatible with any one of these philosophical trends. The manner in which the Austrians managed to reconcile their analysis of economic mechanisms with a strictly subjectivist (...) approach is especially considered. The discussion also underscores some ambiguous dimensions of the debate between holism and individualism. (shrink)

The economists of the Austrian School count among the most consistent supporters of methodological individualism, but they were for the most part strongly opposed to clearly anti-holist trends such as constructivism, reductionism, and positivism. This article discusses why the sort of methodological individualism defended by the Austrians could not, for interconnected reasons, be rendered compatible with any one of these philosophical trends. The manner in which the Austrians managed to reconcile their analysis of economic mechanisms with a strictly subjectivist approach (...) is especially considered. The discussion also underscores some ambiguous dimensions of the debate between holism and individualism. (shrink)

Discussions of Karl Popper's falsificationist philosophy of science appear regularly in the recent literature on economic methodology. In this literature, there seem to be two fundamental points of agreement about Popper. First, most economists take Popper's falsificationist method of bold conjecture and severe test to be the correct characterization of scientific conduct in the physical sciences. Second, most economists admit that economic theory fails miserably when judged by these same falsificationist standards. As Latsis states, “the development of economic analysis would (...) look a dismal affair through falsificationist spectacles.”. (shrink)

Discussions of Karl Popper's falsificationist philosophy of science appear regularly in the recent literature on economic methodology. In this literature, there seem to be two fundamental points of agreement about Popper. First, most economists take Popper's falsificationist method of bold conjecture and severe test to be the correct characterization of scientific conduct in the physical sciences. Second, most economists admit that economic theory fails miserably when judged by these same falsificationist standards. As Latsis states, “the development of economic analysis would (...) look a dismal affair through falsificationist spectacles.”. (shrink)

The present article is a continuation of the debate two sets of authors have been engaging in regarding one type of maturity mismatching: borrowing short and lending long. All four authors had agreed that this practice can set up the Austrian Business Cycle; the present author denies that BSLL would be a legitimate commercial interaction in the free society; Bagus and Howden continue to maintain that it would be licit. Our main criticism of Bagus and Howden is a reductio ad (...) absurdum: that this opens them up to the charge of embracing the doctrine of market failure; this is something highly problematic for the two of them, since all four contributors to this debate are well-known supporters of laissez faire capitalism. (shrink)