Quarterly Journal of Austrian Economics

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In Counterfactuals We're All Dead

The Quarterly Journal of Austrian Economics

Tags Philosophy and Methodology

07/30/2014Mateusz Machaj

Volume 15, Number 4 (Winter 2012)

In his important contribution, Jörg Guido Hülsmann (2003) attempted to redefine the method of economic science. According to him most economic laws are counterfactual in their nature and do not have to rely on ceteris paribus assumptions. The purpose of this note is to demonstrate the shortcomings of counterfactuals, and to reveal that Hülsmann’s contribution is based on the broad ceteris paribus concept. In the first section, we shortly describe the ceteris paribus rule. In the second, we approach the problem of counterfactuals. Third section introduces the ceteris paribus elements into the counterfactual analysis. The article ends with conclusions.

Cite This Article

Mateusz Machaj. "In Counterfactuals We’re all Dead." The Quarterly Journal of Austrian Economics 15, No. 4 (Winter 2012): 443–55.