Review of Austrian Economics - The Ludwig von Mises Institute

More documents

Recommendations

Info

Endres: Capital and Interest Theory 87 temporal integration of production processes in the Bohm-Bawerkian sense. In Wieser's stationary economy the Law of the Equalization of Price prevails and the separation of monetary from real variables is complete. However, close textual study reveals Wieser's impatience with attempts at explaining and refining the logic of the stationary case. He is led perforce to consider at length production in a progressing economy where temporal issues, indeed real historical changes, are pervasive. Hennings's (1986, p. 237) second conclusion is that "Menger, Bohm-Bawerk and to a lesser extent Wieser, were much more concerned with disequilibrium processes" than early equilibrium economists who dealt with production theory. Again, this is not an accurate portrayal of Wieser's concerns relative to Menger's and Bohm- Bawerk's, especially if his Social Economics is given the studious attention it deserves. It should be remembered that Social Economics was Wieser's "last and ripest message on pure theory" (Schumpeter 1951, p. 300). Our explanation, which includes consideration of Social Economics, demonstrates Wieser's concern for everchanging production plans and uncovers his suggestive hints relating to the strategic influence of monetary factors on these plans in the progressing economy. We have seen how Wieser's capital and interest theory is a special hybrid, composed in other words, of mixed doctrinal elements, although on many fundamental points his work remains closer to Menger's than Bohm-Bawerk's. Wieser's avowed intention not to overgeneralize the interest concept suggests, like Menger, uneasiness with the notion of interest as a broad macroeconomic category. Very much like Menger, Wieser justifies a return to capital from its function as a unique cooperating element in production. While process analysis in the Ursprung and in Natural Value is diffuse and subdued, Wieser nevertheless makes some portentous digressions on such matters as the diversity of factor combinations; the tendency of factor combinations to change and on the general discontinuous nature of production functions. Furthermore, Wieser is not generally inclined to reason in terms of continuous, determinate schedules of demand and supply. In Social Economics Wieser's more generous allowance for disequilibrium processes d la Menger is exemplary. It would be misleading to draw the comparisons between Wieser and Menger too favorably such that the former might be placed squarely in the Menger tradition. Nonetheless, the existing historical record has neglected points of theoretical convergence between these two leading 'first generation' Austrians. After all, Menger was not moved to make the charge of a 'great error' in regard to Wieser's construction of a capital and interest theory, as he was to do in
88 The Review of Austrian Economics, Vol. 5, No. 1 Bohm-Bawerk's case (Schumpeter 1954, p. 847n). Wieser not only remained loyal to Menger's subjective theory of value; he heeded Menger's fragmentary adumbrations for developing a coherent theory of capital and interest. Wieser subsequently produced a hybrid theory which revealed certain distinguishing characteristics inherited from Menger. These characteristics were particularly discernible, although not exclusively so, in the variant of Wieser's theory which applied to a progressing economy. Wieser's break from the Menger tradition was therefore neither as fundamental nor as decisive as Bohm-Bawerk's. References Blaug, M. 1978. Economic Theory in Retrospect. 3rd ed. Cambridge: Cambridge University Press. Bohm-Bawerk, E. [1912] 1959. "Some Psychological Considerations Supplementing Our Theory of Value." In Positive Theory of Capital. E. Bohm- Bawerk. Vol. 2 of Capital and Interest. Trans. G. D. Huncke. Spring Mills, Pa.: Libertarian Press. . [1914] 1959. "Recent Literature on Interest, 1884-1914." In History and Critique of Interest Theories. E. Bohm-Bawerk. 3rd ed. Vol. 1 of Capital and Interest. Trans. G. D. Huncke. Spring Mills, Pa.: Libertarian Press. Brems, H. 1986. Pioneering Economic Theory, 1630-1980: A Mathematical Restatement. Baltimore: Johns Hopkins University Press. . 1988. "Time and Interest: Bohm-Bawerk and Akerman-Wicksell." History of Political Economy 20(4): 565-81. Dobb, M. 1973. Theories of Value and Distribution Since Adam Smith. Cambridge: Cambridge University Press. Edgeworth, F.Y. 1925. Papers Relating to Political Economy. Vol. 3. New York: Burt Franklin. Endres, A.M. 1987. "The Origins of Bohm-Bawerk's 'Greatest Error": Theoretical Points of Separation From Menger." Zeitschrift fiir die Gesamte Staatswissenschaft 143(2): 291-309. . 1991. "Menger, Wieser, Bohm-Bawerk and the Analysis of Economizing Behaviour." History of Political Economy 23(2). Forthcoming. Fetter, F.A. [1914] 1977. "Interest Theories, Old and New." Reprinted in F.A. Fetter. Capital, Interest and Rent. M. Rothbard, ed. Kansas City: Sheed Andrews and McMeel. . [1927] 1977. "Interest Theory and Price Movements." Reprinted in F.A. Fetter. Capital, Interest and Rent. M. Rothbard, ed. Kansas City: Sheed Andrews and McMeel. Hayek, F.A. 1941. The Pure Theory of Capital. Chicago: Chicago University Press.
Page 2 and 3:
The Review of Austrian Economics Vo
Page 4 and 5:
Page 6:
Dedication Volume 5, number 1, of t
Page 10:
Articles
Page 13 and 14:
4 The Review of Austrian Economics,
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
10 The Review of Austrian Economics
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46: 36 The Review of Austrian Economics
Page 76 and 77: Austrian Capital and Interest Theor
Page 78 and 79: Endres: Capital and Interest Theory
Page 100 and 101: New Classical and Old Austrian Econ
Page 102 and 103: Garrison: Equilibrium Business Cycl
Page 112: Garrison: Equilibrium Business Cycl
Page 116 and 117: Marxism, Capitalism and Mercantilis
Page 118 and 119: Review Essay 109 nate private tradi
Page 120 and 121: Review Essay 111 colonists to buy o
Page 122 and 123: Review Essay 113 But, perhaps ironi
Page 124: Book Reviews
Page 127 and 128: 118 The Review of Austrian Economic
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Dedication Volume 5, number 2, of t
Page 154:
Review of Austrian Economics Volume
Page 158 and 159:
The Great Depression of 1946 Richar
Page 160 and 161:
Vedder and Gallaway: The Great Depr
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
100 The Review of Austrian Economic
Page 257 and 258:
Page 259 and 260:
Page 262 and 263:
The Preferred Tax Type: Comment on
Page 264 and 265:
Tabarrok: Preferred Tax Type 109 He
Page 266 and 267:
Comment on Preferred Tax Type: Repl
Page 268 and 269:
Herbener: Comment on Preferred Tax
Page 270 and 271:
Herbener: Comment on Preferred Tax
Page 272:
Book Reviews
Page 275 and 276:
Page 278 and 279:
If You're So Smart: The Narrative o
Page 280 and 281:
Book Reviews 125 But do his own fin
Page 282:
Book Reviews 127 with the Austrian
Page 285 and 286:
Page 287 and 288:
show all

Review of Austrian Economics - The Ludwig von Mises Institute

Create successful ePaper yourself

Delete template?

Save as template?