Handbook on Contemporary Austrian Economics

26 <strong>Handbook</strong> on contemporary Austrian economics
having renewed research in economic history by applying economic theory
and quantitative methods in order to explain economic and institutional
change." Similarly, as discussed in the previous section, much of the more
recent work by well-known economists such as Daron Acemoglu, Simon
Johnson, James Robinson, Dan Rodrik, and Andrei Shleifer, among
others, has focused on the role of institutions on economic outcomes. Of
course not all of these economists have fully adopted the exchange paradigm,
but they are addressing issues related to institutions and the context
in which interaction and exchange take place. 3 These issues have been at
the core of Austrian economics since its origins (see Garrouste, 2008).
Likewise, consider the renewed focus on "information economics" as
evidenced by the 2001 Nobel Prize co-awarded to George Akerlof, Joseph
Stiglitz, and Michael Spence, "for their analyses of markets with asymmetric
information." Issues of information economics were addressed decades
earlier in the work ofF.A. Hayek and other Austrians who questioned the
orthodox assumption of perfect information. Although many Austrians
disagree with the conclusions of those working in the field of information
economics (see, for instance, Boettke, 1996), the fact that these issues
are being addressed and debated in the mainstream of the economics
profession should be seen as a positive.
Austrian economics has often been marginalized by the broader economics
profession. Part of this is due to the dominance of the value
paradigm and part is due to the' failure of those working in the Austrian
tradition to effectively engage the profession. That said, with the emergence
of a new research program grounded in the exchange paradigm,
Austrian economics is as relevant as ever. There is much that Austrians
can contribute to both the academic and policy discussions. Kohn (2004;
2007) provides several paths of research for those working within the
exchange paradigm.
The first area of research focuses on the study of the history of economic
thought. From this standpoint, the exchange paradigm provides a
means of classifying past contributions (see Meijer, 2007; Wagner, 2007).
It can also assist in resolving existing controversies within the economics
discipline (see Marciano, 2007).
Work in economic theory is a second area where those working in the
exchange paradigm can make a contribution. For example, Potts (2007)
contends that the exchange paradigm should be dev~loped into a clear
and operational theory. He argues that the way this can be accomplished
is by merging the exchange paradigm with evolutionary economics. Axtell
(2007) argues that agent-based modeling offers the best means of clearly
articulating the exchange paradigm.
A final area where adherents of the exchange paradigm can make a