On Menger’s “Principles of Economics”

Mises supposedly said that Carl Menger’s Principles was still (at the time) the best introduction to Austrian economics. This is certainly true, but I would go further than that. The Principles is not only an introduction to Austrian economics but a great introduction to sound economic thinking. Whether you agree with “Austrians” or not, and […]

A Spectacle Due To Spectacles

I was recently recommended to read Bryan Caplan‘s 1999 article “The Austrian Search for Realistic Foundations” (JSTOR). Caplan is no doubt an intelligent scholar, but he does not show this fact in the mentioned article. Rather, to any reader knowledgeable in Austrian economics, this article appears at best to be a spectacle. The reason for […]

Division of Labor and the Firm

In an article recently accepted for publication in the Quarterly Journal of Austrian Economics, I draft a model for explaining how firms emerge in the market place. Whereas theories of the firm generally attempt to explain the rationale for firms, their boundaries, and how they are internally organized, there are pretty much no studies at […]

The Basis for Predictions

In a previous post I discussed the well-known fact that economists’ predictions are always wrong, and why they always are. But one obvious problem with predictions was left out of the discussion, and I would like to discuss this problem in a separate post. In contrast to the previous post, which was quite general in […]

Why Do Economists Sympathize with the Right?

This is a legitimate question even though it doesn’t necessarily imply that economists (American such, at least) in general are Republicans. But it is a fact that economists in general tend to be to the “right” (according to the common understanding of the political right) of e.g. sociologists and political scientists. It is also a […]