Abstract: In her paper “Corporate Risk Evaluation in the Context of Austrian Business Cycle Theory” recently published in this journal, Joanna Kruk aims to investigate how artificially low interest rates resulting from central bank intervention distort individual investment appraisals and ultimately result in both entrepreneurial misjudgment and
The Economic Theory of Costs: Foundations and New Directions Matthew McCaffrey, Ed. London and New York: Routledge, 2018, xiv + 270 pp. Karl-Friedrich Israel (KF_Israel@gmx.de) is lecturer at the Department of Law and Economics at the University of Angers, France. Quarterly Journal of Austrian Economics 21, no. 3 (Fall 2018) full issue, click
ABSTRACT: In the division of labor, economizing valuations require an appraisement of the structure of market prices of goods beforehand. Yet, investment decisions concerning the purchase of an entire business enterprise, for example, necessitate considerations beyond appraisement. An economizing valuation of businesses must be based upon both
ABSTRACT: Contrary to the Austrian community’s former perception, we revealed value investing’s incompatibility with Austrian economics (Rapp, Olbrich, and Venitz, 2017). However, Leithner (2017) disagrees with this conclusion. He primarily argues that an analysis of value concepts should be neglected in favor of a discussion of the methods value
Volume 3, No. 1 (Spring 2000) This note has shown that the possibility of the income effect of a price change is implied by the Misesian pure logic of choice. This note has not assumed that our individual must consume more than four loaves of bread to survive. No ad hoc assumption has been employed. Instead, the possibility of a backward
Volume 3, No. 4 (Winter 2000) Economic science, as handed down to us from Menger and Mises, explains observed human behavior by referring to other features of the real world. Both the phenomenon to be explained and the explanation itself are thus strictly realistic—a charm and advantage of the Menger-Mises approach as compared to other approaches.
Volume 4, No. 2 (Summer 2001) Supporters of Kaldor-Hicks believe it useful to have a quantitative measure to assess the efficiency of different situations. Although it may appear convenient to be able to judge policies using such an efficiency standard, I will argue that no such measures can be constructed . Contrary to Caplan who
Volume 5, No. 3 (Fall 2002) Böhm-Bawerk is the most important Austrian economist after Ludwig von Mises . The author says this on the basis of the fact that his writings provide by far the best and most comprehensive development of the law of diminishing marginal utility and its application to price theory that is to be found anywhere. And
Volume. 5, No. 1 (Summer 2002) The times are past in which one could naively teach the cost theory without getting involved in more precise explanations concerning in particular the origin of the value of the cost goods itself and the laws determining its magnitude. Whoever begins, however, really to explain, instead of merely assert, will
Volume 6, No. 1 (Spring 2003) Neoclassical utility functions are an invalid means of analyzing consumer behavior for three reasons: first, and most important, because such functions, and their attendant rankings, are cardinal, not ordinal in nature; second, because, with respect to the set of bundles relevant to actual human beings, such
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.