Subjectivism and Economic Analysis: Essays in memory of Ludwig ...

STEPHEN D.PARSONSends people aim at and what means they apply for therealization of their plans.(ibid.: 24)Whereas rational choice theory is normative, in the sense that itstipulates how individuals ought to behave if their behaviour is to becharacterised as ‘rational’, Mises’s theory assumes a priori that allhuman action is rational, and thus economics ‘does not deal with theought, but with the is’ (ibid.: 23). Consequently, on thisinterpretation, Mises is arguing that we are a priori committed toviewing human behaviour as rational and purposive, and we mustmake this commitment a priori to identifying (‘comprehending’)anything as an action.Given this, as economics is concerned with human actions thatcan only be recognised as such through certain constitutiveprinciples, then economics is logically prior to the historical concernwith the individual. As noted earlier, history is concerned to ‘graspthe meaning of individuality’ (ibid.: 12). However, in order that themeaning of any individual action can be understood, this individualaction must have already been identified as an action. Consequently,praxeology is not only distinct from historical investigations, buthistorical investigations presuppose praxeology: ‘The radicalempiricism of the historicists went astray in ignoring this fact. Noreport about any man’s conduct can do without reference to thepraxeological a priori’ (ibid.: 49).From this perspective, it can be argued that praxeology isconcerned to establish the most basic concepts relevant toidentifying motions as actions. Unfortunately, as noted, Mises’swritings also appear to vindicate alternative interpretations. Forexample, Mises argues that:If we had not in our mind the schemes provided bypraxeological reasoning, we should never be in a position todiscern or grasp any action. We would perceive motions, butneither buying nor selling, nor prices, wage rates, interestrates, and so on.(Mises 1949:40)If this is taken as arguing that we must be a priori committed toapplying certain concepts to motions in order to render themintelligible as human actions, then the ‘Davidsonian argument’ findsadditional support. However, if Mises is also attempting to establish38