Quarterly Journal of Austrian Economics

Home | Mises Library | Binary Economics: Paradigm Shift or Cluster of Errors?

Binary Economics: Paradigm Shift or Cluster of Errors?

  • The Quarterly Journal of Austrian Economics
0 Views

Tags Philosophy and Methodology

07/30/2014Timothy D. Terrell

 

Volume 8, No. 1 (Spring 2005)

 

Binary economics is a theory of economic growth that places emphasis upon the distribution of capital, rather than the quantity of capital or the productivity of labor. Its roots are found in the late 1950s, in the work of Louis Kelso, originator of the Employee Stock Option Plan. Regarded as a paradigm shift by its proponents, binary economics maintains that capital is productive independent of the labor input, and that most economic growth occurs as a result of capital accumulation, exclusive of increases in the knowledge or skills of humans.

Author:

Contact Timothy D. Terrell

Timothy Terrell is professor of economics at Wofford College in Spartanburg, South Carolina. He is assistant editor of the Quarterly Journal of Austrian Economics and is a Senior Fellow of the Mises Institute.

Cite This Article

Terrell, Timothy D. "Binary Economics: Paradigm Shift or Cluster of Errors?" The Quarterly Journal of Austrian Economics 8, No. 1 (Spring 2005): 31–50.

Shield icon library