of existing capital goods and in new capital goods in order to expand their growth. Responding to Markets or the Central Bank? There is no doubt that an increase is the key for the expansion of goods and services. But is it always good for economicgrowth? Is it always good for the wealth-generation process? Consider the
2, No. 2 (Summer 1999) Recently, scholars working in the field of modern Austrian economics have wondered about what this literature might offer for an understanding firms are able to earn “rents.” This concept of rents is also derived from economic foundations, namely the theory of rent as developed by David Ricardo (1973) Penn.: Libertarian Press. Penrose, Ernest F. [1959] 1995 . The Theory of the Growth of the Firm. London: Basil Blackwell. Peteraf, M.A. 1993. “The Cornerstones of
and recognized time preference as a factor in determining the interest rate and economicgrowth. Mises (2009 [1912]) used these insights among others to sketch a capital and
Apparently all it takes to get recognition these days from the National Bureau of Economic Research is to time yourself doing math problems. In this new paper from the Aruoba and Jesús Fernández-Villaverde solve the familiar stochastic neoclassical growth model using various software, programming languages, and operating systems, in search of the fastest, most efficient way to do economics. Criticisms of the model aside, we see that contemporary mainstream
these depictions are helpful in order to visualize the most basic features of growth and cycle theories in the Austrian tradition, a more detailed formalization is Goods-in-Process Structure of Production.” The Quarterly Journal of Austrian Economics 10, No. 3 (2007): 193–208.
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.