Production Theory

One of the Austrian arguments against using mathematics to model economic phenomena is that there are no constants in economics, as things always are changing.

Austrian economists have long criticized using mathematics to undergird economic analysis. It is time to apply that same criticism to using math to undergird analysis of financial markets.

Historical data is not enough for economists to make sense of it. Instead, that data must be viewed through a theoretical framework that explains what has happened.

Most economists subscribe to a belief in “positive economics,” which means that economic theory flows from economic data. Thus, all theory can be tested for falsification at any time. Austrian economics, however, begins with economic theory, which is used to interpret the real world.

Dr. Jeffrey Herbener explains why “Crusoe economics” isn’t a caricature but the indispensable starting point for economics and liberty—built from action, property, and exchange.

Capital goods shape civilization itself.

Isaac Newton is best known for his development of mathematics and physics, but he also took a keen interest in economics, especially the relationship of money to economic exchange. He also believed that economic laws, like gravity, were immutable.

Bob walks through diagrams from Hayek's famous LSE lectures to explain the Austrian view of the boom-bust cycle.

Dr. Matt McCaffrey joins Bob to discuss his newly published journal article exploring the dispute Fetter had with the august British economist Alfred Marshall over the theory of rent.

Bob explains how future inflow of extraterrestrial riches could boost the standard of living on Earth in the near term.