Volume 16, No.4 (Winter 2013) ABSTRACT : The aim of this paper is twofold: to reformulate the concept of contestable markets in the context of property boundaries, and to recapitulate the characteristics of “sunk costs.” The first section outlines the idea of contestable markets developed in the 1980s and contrasts it with the perfect competition
Volume 17, No.1 (Spring 2014) ABSTRACT : This paper defends the Rothbardian theory which states that the proportion of consumption spending relative to investment spending is systematically related to the interest rate through time preference in society, contrary to Hülsmann (2008). After clarifying that a time market transaction is based on two
Mihai Vladimir Topan Volume 15, Number 1 (Spring 2012) In his Man, Economy, and State , Murray Rothbard introduces the catallactic function of decision-making owner, and the correspondent income of decision-making ability rent. These are supposed to exist both in ERE (they are, therefore, distinct from the capitalist function and his income, from
Volume 15, No. 3 (Fall 2012) In this paper we tackle two shortcomings of the present efficiency wage models. Firstly, they do not fully account for labor heterogeneity, thus implying that high-effort and low-effort units of labor are interchangeable. Secondly, building on this assumed homogeneity of labor, the models derive involuntary
I would like to thank Joe Salerno for his kind invitation to present the Ludwig von Mises lecture for 2010, in this way giving me the opportunity to present these views on the classical theory of the cycle and Say’s Law to a wider audience. I would also like to thank my good friend, Peter Smith, who provided excellent and sympathetic advice on an
Volume 14, Number 2 This paper reviews Austrian approaches to the firm and drafts a theory that emphasizes the firm as a market phenomenon. Here the firm is a vehicle for imaginative entrepreneurs to create artificially high factor density, thereby increasing its internal “extent of the market” to support specialization of factors beyond the
Volume 10, No. 3 (2007) Most of the economists of the Austrian School use straightforward representations of the Hayekian structure of production. Even though these depictions are helpful in order to visualize the most basic features of growth and cycle theories in the Austrian tradition, a more detailed formalization is necessary in order to
Volume 10, No. 3 (2007) Does Structuralist unemployment theory in the spirit of Edmund S. Phelps (1994) contain Austrian elements? Austrian macroeconomics concerns itself with the intertemporal capital structure and entrepreneurial expectations. This paper shows that Structuralist theory is “Austrian” by being dynamic and considering
Volume 11, No. 1 (2008) This paper deals with the recent empirical phenomenon of intra-industry trade, i.e., trade in similar goods between similar countries. It treats this phenomenon from the point of view of the theory of the structure of production, highlighting the importance of the sequential nature of production and heterogeneity and
Volume 12, No, 2 (2009) Mises created an artificial construct, the evenly rotating economy (ERE), from which to ascertain the source of entrepreneurial profit and loss. In particular, the ERE is characterized by two distinct elements. First is the elimination of the temporal element, second is the removal of changing market data. The second
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.