Austrian economics has important contributions to make in two particular areas — to the theory of rent and to an understanding of the meaning of equilibrium. The legacy of perfect competition casts a long shadow, inhibiting an adequate understanding of the dynamic market process in which rent is earned in disequilibrium.
Mises created an artificial construct, the evenly rotating economy (ERE), from which to ascertain the source of entrepreneurial profit and loss. In particular, the ERE is characterized by two distinct elements.
Austrian insights are useful for not only interpreting recent claims, but also for understanding their reach. In particular, Misesian insights are helpful here
Rothbard (1993, pp. 638–45) refuted the important economic fallacy that excess capacity is a normal consequence of profit maximizing behavior by businesses in some industries when they are in long-run equilibrium.
In his Man, Economy, and State, Murray Rothbard introduces the catallactic function of decision-making owner, and the correspondent income of decision-making ability rent.
Empirical analysis and interpretation of employment and interest data based on the Hayekian triangle have proved highly fruitful in revealing new information about the structure of U.S. production.
Does Structuralist unemployment theory in the spirit of Edmund S. Phelps (1994) contain Austrian elements? Austrian macroeconomics concerns itself with the intertemporal capital structure and entrepreneurial expectations.
It is a rare individual who is able to draw from many disparate traditions in economic thought and combine these into a coherent research program.
This paper has incorporated challenges to the dominant neoclassical model that were fashioned by Rothbard and, to a much lesser extent, Baumol.
It is taken for granted by most economists and political philosophers that John Locke was in some sense a precursor of the labor theories of value
