4 Problems with Austrian Economics

This article outlines 4 problems with Austrian economics. Specifically, I’m arguing with Mises in 3 cases and in with Kirzner in 1. 1 Not all human action is rational Depending on how you slice it, my assertion here could be taken as merely semantic or very serious. I agree that human action as described by … Read more 4 Problems with Austrian Economics

Economic Calculation is Possible Without Prices

I argue three key points in this article. First, there are parameters which can substitute for prices to make any economic problem solvable. Second, prices themselves cannot emerge without these priors, so the priors are logically superior in necessity. Third, it’s possible for a single mind to plan the economy of a group in a … Read more Economic Calculation is Possible Without Prices

Summing Budget Lines Does Not Derive the Demand Curve

It’s a common exercise in undergraduate economics to sum individual budget constraints to derive a market demand curve, but this is wrong. Budget constraints are immune to changes in individual preference, but demand is not. Budget constraints do not include economic cost, but quantities demanded do include preference and economic cost information (see point 5) … Read more Summing Budget Lines Does Not Derive the Demand Curve