2002 AUSTRIAN ECONOMICS SUMMER SEMINAR

-Readings-

June 22-28, 2002

 

The Foundation for Economic Education

30 South Broadway

Irvington-on-Hudson, NY 10533

 

 

Recommend General Readings

Ludwig von Mises, Human Action: A Treatise on Economics. Chicago: Henry Regnery, 1966.

Peter J. Boettke, ed., The Elgar Companion to Austrian Economics.  Aldershott, UK: Edward Elgar, 1994.

Peter J. Boettke and David Prychitko, eds., Market Process Theories.  Aldershott, UK: Edward Elgar, 1998.

Edwin Dolan, ed., The Foundations of Modern Austrian Economics. Kansas City: Sheed & Ward, 1976.

Karen Vaughn, Austrian Economics in America. New York: Cambridge University Press, 1994.

Israel M. Kirzner, Classics in Austrian Economics, 3 volumes. London: Chatto & Pickering, 1994. 

 

 

SATURDAY June 22

 

Lecture 1: Austrian Economics and FEE (Skousen)

 

Kirzner, Israel M. “FiftyYears of FEE --- Fifty Years of Progress in Austrian Economics,” Ideas on Liberty (May 1996).

 

Skousen, Mark. Economic Logic. Lanham, MD: Capital Press, 2000.

 

Skousen, Mark. The Making of Modern Economics. Armonk, NY: M.E. Sharpe, 2001, chapters 7, 12, 16 and 17.

 

Skousen, Mark. “Vienna and Chicago: A Tale of Two Schools,” Ideas on Liberty (February 1998).

 

 

SUNDAY June 23

 

Lecture 2: Austrian Economics in the Contemporary Landscape (Boettke)

Boettke, Peter J. “Where Did Economics Go Wrong?: Modern Economics as a Flight from Reality,” Critical Review, 11 (1997): 11-64.

Backhouse, Roger. “Austrian Economics and the Mainstream: A View from the Boundary,” Quarterly Journal of Austrian Economics, 3 (2) Summer 2000, 31-43.

Baumol, W. “What Marshall Didn’t Know: On the Twentieth Century’s Contributions to Economics,” Quarterly Journal of Economics, 115 (February 2000): 1-44.

 

Stiglitz, J.  “The Contributions of the Economics of Information to Twentieth Century Economics,” Quarterly Journal of Economics, 115 (November 2000): 1441-1478.

 

 

Lecture 3: On the History and Method of Austrian Economics (Kirzner)

Boettke, Peter J. and Peter Leeson, “The Austrian School of Economics, 1950-2000,” in Blackwell Companion to the History of Economic Thought. Oxford: Basil Blackwell Publishers, 2002.

Kirzner, Israel M. "The Austrian School of Economics," The New Palgrave Dictionary of Economics (Macmillan, 1987).

Kirzner, Israel M. "On the Method of Austrian Economics," in Edwin Dolan, ed., The Foundation of Modern Austrian Economics. Kansas City: Sheed & Ward, 1976: 40-51.

Kirzner, Israel M. "Philosophical and Ethical Implications of Austrian Economics," in Edwin Dolan, ed., The Foundation of Modern Austrian Economics. Kansas City: Sheed & Ward, 1976: 75-88.

Kirzner, Israel M., ed., Classics in Austrian Economics, 3 vols. (Pickering and Chatto, 1994), introductions to all three volumes.

 

Lecture 4: Subjectivism: What is it? Why Does it Matter? (Rizzo)

Cowan, Robin and Mario J. Rizzo, "The Genetic-Causal Tradition and Modern Economic Theory," Kyklos, 49, no. 3 (1996): 1-44.

Hayek, F. A. “Scientism and the Study of Society,” Economica, 9 (1942): 267-291.

Hayek, F. A. “Scientism and the Study of Society,” Economica, 10 (1943): 34-63.

Hayek, F. A. “Scientism and the Study of Society – Part II,” Economica, 11 (1944): 27-39.

O'Driscoll, Jr.,G. P., and Mario J. Rizzo, The Economics of Time and Ignorance. New York: Routledge, 1995: 44-50.

Buchanan, James. Cost and Choice. Chicago, 1969: 16-50. Available on-line at: http://www.econlib.org/library/Buchanan/buchCv6c1.html

Bohm-Bawerk, Eugen. "On the Value of Producers' Goods and the Relationship between Values and Costs." In Böhm-Bawerk, Capital and Interest (vol. 3): Further Essays in Capital and Interest. Libertarian Press, 1959[1921]: 104-115

Wicksteed, Philip. "The Scope and Method of Political Economy in the Light of the "Marginal" Theory of Value and Distribution," (1914), reprinted in Wicksteed, Common Sense of Political Economy, edited by Lionel Robbins, vol. 2, London: Routledge, 1935: 772-796.

 

Lecture 5: The Theory of the Market Process (Kirzner)

Kirzner, Israel M. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, 35 (March 1997): 60-85.

Kirzner, Israel M. The Meaning of Market Process (Routledge, 1992), chapters 1-2.

Garrison, Roger. "Equilibrium and Entrepreneurship," Advances in Austrian Economics, Vol. 2 [Part A] (1995): 67-78.

Machovec, Frank. Perfect Competition and the Transformation of Economics (Routledge, 1995).

 

PRESENTATION

Iliev, Ilian. “Entrepreneurship and Venture Capital in the Former Socialist Economies.”

 

Guest Lecture #1: Hayek’s Implicit Economics (Karen Vaughn)

Vaughn, K. “Hayek’s Implicit Economics: Rules and the Problem of Order,” Review of Austrian Economics, 11 (1999): 129-144.

 

 

MONDAY June 24

Lecture 6: Capital and Interest Theory (Garrison)

Garrison, Roger W. “Eugen von Bohm-Bawerk,” in Randall Holcombe, ed., Fifteen Great Austrian Economists, Auburn, AL: Ludwig von Mises Institute, 1998, pp. 113-122.

 

Garrison, Roger. W. “The Undiscountable Professor Kirzner,” The Freeman, vol. 47, no. 8 (August), 1997, pp. 511-13.

 

Garrison, Roger. W. “A Subjectivist Theory of a Capital-Using Economy,” in Gerald O’Driscoll and Mario Rizzo, The Economics of Time and Ignorance. New York: Routledge, 1995, pp. 160-187.

 

Garrison, Roger W. “Professor Rothbard and the Theory of Interest,” in Walter Block and Llewellyn Rockwell, eds., Man, Economy and Liberty: Essays in Honor of Murray N. Rothbard. Auburn: Ludwig von Mises Institute, 1988, pp. 44-55.

 

Hayek, F. A.. Prices and Production, second revised edition, New York: Augustus M. Kelley, 1967 [1935], Chapter 2 (pp. 32-68).

 

 

 

Lecture 7: Microfoundations and Macroeconomics:  Alternative Approaches (Horwitz)

 

Horwitz, Steven.  2000.  Microfoundations and Macroeconomics:  An Austrian Perspective, New York:  Routledge.

 

Horwitz, Steven. “Capital Theory, Inflation and Deflation,” Journal of the History of Economic Thought, 18 (2), Fall 1996, pp.287- 308.

 

Lachmann, Ludwig. 1978. Capital and Its Structure, Kansas City:  Sheed Andrews and McMeel.

 

Leijonhufvud, Axel. 1981. “The Wicksell Connection,” in Information and Coordination, Oxford:  Oxford University Press.

 

Bellante, D. 1994. “Sticky Wages, Efficiency Wages and Market Processes,” Review of Austrian Economics, 8 (1): 21-33.

 

Shah, Parth. 1997.  “The Theory of Business Fluctuations: New Keynesians, Old Monetarists, and Austrians,” Advances in Austrian Economics 4, Greenwich, CT: JAI Press: 33-62.

 

Yeager, Leland B.. 1968.  “Essential Properties of the Medium of Exchange,” Kyklos, January/March.

 

 

Lecture 8: Monetary Theory: The Austrian Contribution (White)

Menger, Carl.  "On the Origin of Money," Economic Journal 2 (June 1892): 239-55.

 

Mises, Ludwig.  The Theory of Money and Credit, ch. 8, pp. 129-77. Indianapolis: LibertyClassics, 1980.

http://www.econlib.org/library/Mises/msTtoc.html

 

White, Lawrence. "Hayek's Monetary Theory and Policy: A Critical Reconstruction", Journal of Money, Credit and Banking, 31 (February 1999): 109-120.

 

Selgin, George and Lawrence H. White, "The Evolution of a Free Banking System,"  Economic Inquiry, 25, no. 3 (1987): 439-457.

 

Lecture 9: The Theory of Business Fluctuations (Garrison)

Garrison, Roger W. Time and Money: The Macroeconomics of Capital Structure. London: Routledge, 2001, Chapters 3 and 4 (pp. 33- 83).

 

Garrison, Roger W. “The Great Depression Revisited,” The Independent Review, vol. 3, no. 4 (Spring), 1999, pp. 595-603.

 

Garrison, Roger W. “The Austrian Theory: A Summary,” in Ludwig von Mises et al., The Austrian Theory of the Business Cycle and Other Essays, Auburn, AL: Ludwig von Mises Institute, 1996, pp. 111-121.

 

Garrison, Roger W. “The Hayekian Trade Cycle Theory: A Reappraisal,” Cato Journal, vol. 6, no. 2 (Fall), 1986, pp. 437‑453.

 

Garrison, Roger W. “The Austrian Theory of the Business Cycle in Light on Modern Macroeconomics,” Review of Austrian Economics, 3 (1989).

 

Hayek, F. A.. Prices and Production, second revised edition, New York: Augustus M. Kelley, 1967 [1935], Chapter 3 (pp. 69-100).

 

Keeler, James. “Empirical Evidence on the Austrian Business Cycle Theory,” Review of Austrian Economics, 14 (4) 2001: 331-351.

 

Carilli, T. and Dempster, G. “Expectations in Austrian Business Cycle Theory,” Review of Austrian Economics, 14 (2001): 319-330.

 

 

PRESENTATION

 

Adolfo Laurenti, “From Trading Club to Firm: On Governance, Competition, and Regulation in Financial Markets.”

 

 

Guest Lecture #2: An Austrian Perspective on Public Policy (Sautet)

 

Sautet, F. “Economic Transformation, The Pretense of Knowledge, and the Process of  Entrepreneurial Competition,” New Zealand Treasury Working Paper, January 2002.

 

TUESDAY June 25

Lecture 10: Time and Money: An Agenda for Macroeconomics (Garrison)

Bellante, D. and Garrison, R. “Phillips Curves and Hayekian Triangles: Two Perspectives on Monetary Dynamics,” History of Political Economy, vol. 20, no. 2, 1988, pp. 207‑234.

 

Garrison, Roger W. Time and Money: The Macroeconomics of Capital Structure. London: Routledge, 2001, Chapter 2.

 

Garrison, Roger W. “Time and Money: The Universals of Macroeconomic Theorizing,” Journal of Macroeconomics, vol. 6, no. 2 (Spring), 1984, pp. 197‑213.

 

Leijonhufvud, Axel. “Three Items for the Macroeconomic Agenda,” Kyklos, vol. 51, no. 2, 1998, pp. 197‑218.

 

Sechrest, Larry. “Austrian and Monetarist Business Cycle Theories: Substitutes or Complements?” Advances in Austrian Economics, vol. 4, 1997, pp. 7‑31.

 

 

Lecture 11: Monetary Institutions (White)

Selgin, G. and Lawrence White, "How Would the Invisible Hand Handle Money?," Journal of Economic Literature (1994).

Selgin, George, and Lawrence H. White, “A Fiscal Theory of Government’s Role in Money,” Economic Inquiry 37 (January 1999): 154-65.

White, Lawrence H. Free Banking in Britain, 2nd edition. London: Institute for Economic Affairs, 1996.

White, Lawernce H.  The Theory of Monetary Institutions.  Oxford: Basil Blackwell, 1999.

 

WEDNESDAY June 26

Lecture 12 : Socialist Calculation and Modern Models of Socialism (Boettke)

Caldwell, Bruce. "Hayek and Socialism," Journal of Economic Literature, Vol. XXXV (December 1997): 1856-1890.

Kirzner, Israel. “The Socialist Calculation Debate: Lessons for Austrians,” Review of Austrian Economics, 2 (1988).

Boettke, Peter. "Economic Calculation: The Austrian Contribution to Political Economy," Advances in Austrian Economics, Vol. 5 (1998): 131-158.

Boettke, Peter.  “Towards a History of the Theory of Socialist Planning,” in Peter J. Boettke, ed., Socialism and the Market: The Socialist Calculation Debate Revisited, IX volumes (New York: Routledge, 2000): Vol. I, 1-39.

Lavoie, Don. Rivalry and Central Planning (Cambridge University Press, 1985), chapters 1, 3 and 6.

 

Lecture 13: Tendency Toward Equilibrium: Some Austrian Disagreements (Rizzo)

Rizzo, Mario. "Hayek's Four Tendencies to Equilibrium," Cultural Dynamics (1990).

Rizzo, Mario. "Equilibrium Visions," South African Journal of Economics (1992).

Hayek, F. A. "Economics and Knowledge," in Individualism and Economic Order (University of Chicago Press, 1948): 33-66.

Lachmann, L. “From Mises to Shackle: An Essay on Austrian Economics and the Kaleidic Society,” Journal of Economic Literature, 14 (1) 1976.

Loasby, Brian. Equilibrium and Evolution: An exploration of connecting principles in economics. Manchester, UK: Manchester University Press, 1991: 1-57.

Selgin, G. “Praxeology and Understanding,” Review of Austrian Economics, 2 (1988).

Makowski, L. and Ostroy, J. “Perfect Competition and the Creativity of the Market,” Journal of Economic Literature, 39 (2001): 479-535.

 

Lecture 14: An Austrian Approach to Macroeconomic Modeling (Skousen)

Skousen, Mark. The Structure of Production. New York: New York University Press, 1990.

Skousen, Mark. Economic Logic. Lanham, MD: Capital Press, 2000.

Skousen, Mark. “Beyond GDP: A Breakthrough in National Income Accounting,” Ideas on Liberty (April 2001).

 

Lecture 15: Current Research on Urban Economics and Public Policy (Ikeda)

Desrochers, Pierre. “Geographic Proximity and the Transmission of Tacit Knowledge,” Review of Austrian Economics, 14 (1) 2001.

Jacobs, Jane.  “The kind of problem a city is,” Death and Life of Great American Cities.  New York: Vintage, 1961, chapter 22.

O’Toole, Randal.  “Is urban planning creeping socialism?” Independent Review, 4 (Spring 2000).

Garreau, J. “New Jersey” in Edge Cities:  Life on the New Frontier.  New York:  Anchor Books, 1991.

 

Hayek, F. A. “Housing and town planning” in The Constitution of Liberty.  Chicago: University of Chicago Press, 1960.

 

Holcombe, R. and Samuel R. Staley (eds) (2001).  Smarter Growth: Market-Based Strategies for Land-Use Planning in the 21st Century (Contributions in Economics and Economic History, No. 224).  Greenwood Publishing Group.

 

Gordon, Peter and Harry Richardson. “Hayek and Cities: Guidelines for Regional Scientists,” 1999. On-line publication at http://www-rcf.usc.edu/~pgordon/hayek.html

 

 PRESENTATION

 Guest Lecture #3: A Coordinationist Perspective on Macroeconomics (Wagner)

Wagner, Richard. “Austrian Cycle Theory: Saving the Wheat While Discarding the Chaff,” Review of Austrian Economics, 12 (1999).

Wagner, Richard. “Austrian Cycle Theory and the Prospect for a Coordinationist Macroeconomics.”

Wagner, Richard. “Catallactic Foundations for Macroeconomics.”

 

THURSDAY June 27

Lecture 16: Welfare Economics and the Good Society (Horwitz)

Rothbard, M. “Toward a Reconstruction of Utility and Welfare Economics,” On Freedom and Free Enterprise. Princeton: Van Nostrand, 1956.

Kirzner, I. "Welfare Economics: A Modern Austrian Perspective," in W. Block and L.  Rockwell, eds., Man, Economy and Liberty: Essays in Honor of Murray Rothbard (Ludwig von Mises Institute, 1988).

Roy Cordato, Welfare Economics in an Open-Ended Universe (Kluwer Academic Publishers, 1992).

Horwitz, S. “From The Sensory Order to the Liberal Order,” Review of Austrian Economics, 13 (2000): 23-40.

Horwitz, S. “From Smith to Menger to Hayek,” The Independent Review, 6 (2001): 81-97.

Stringham, E. “Kaldor-Hicks Efficiency and the Problem of Central Planning,” Quarterly Journal of Austrian Economics, 4 (2) 2001: 41-50.

Lewin, P. “The Market Process and the Economics of QWERTY,” Review of Austrian Economics, 14 (2001): 65-96.

 

Lecture 17: Austrian Political Economy (Boettke)

Boettke, P. and Peter Leeson, “An ‘Austrian’ Perspective on Public Choice,” in The Encyclopedia of Public Choice. Boston: Kluwer Academic Publishers, 2003.

Boettke, P. “Hayek’s The Road to Serfdom Revisited: Government Failure in the Argument Against Socialism,” Eastern Economic Journal 21 (1995): 7-26.

Boettke, P. “James M. Buchanan and the Rebirth of Political Economy,” in Economics and Its Discontents. Aldershot, UK: Edward Elgar Publishing, 1998.

Wagner, R. “Boom and Bust: The Political Economy of Disorder,” Journal of Libertarian Studies, 4 (1980).

Wohlgemuth, M. “Entry Barriers in Politics,” Review of Austrian Economics, 12 (1999): 175-200.

 

Lecture 18: Institutional Preconditions for Economic Development (Harper)

Olson, M, "Big Bills Left on the Sidewalk: Why Some Nations are Rich, and Other Poor," Journal of Economic Perspectives, Vol. 10, no. 2 (Spring 1996): 3-24.

Holcombe, R. “Entrepreneurship and Economic Growth,” Quarterly Journal of Austrian Economics, 1 (2) 1998: 45-62.

Robert Barro, "Democracy and Growth," Journal of Economic Growth, 1, no. 1 (1996): 1-27.

Harper, David. "Institutional Conditions for Entrepreneurship," Advances in Austrian Economics, Vol. 5 (1998): 241-276.

Steele, Charles. "Entrepreneurship and the Economics of Growth," Advances in Austrian Economics, Vol. 5 (1998): 51-84.

Lecture 19: Current Research on Alternative Monetary Regime: A Dialogue (White and Horwitz)

Horwitz, S. “The Costs of Inflation Revisited,” Review of Austrian Economics, 16 (2003), forthcoming.

 

White, L. “Does a Superior Monetary Standard Spontaneously Emerge?,” Journal des Economistes et des Etudes Humaines, forthcoming.

Selgin, G. and Lawrence H. White, “In Defense of Fiduciary Media,” Review of Austrian Economics 9 (1996): 83-107.

 

Open Discussion: An Austrian on the Academic Job Market (Stringham)

Survey of the Labor Market for New PhD Hires in Economics, 2002-2003.

 

Guest Lecture #4: Hayek and Experimental Economics (Smith)

Smith, V. “Markets, Institutions and Experiments,” Encyclopedia of Cognitive Science, forthcoming.

 

FRIDAY July 28

Lecture 20: Law Amid Flux - The Importance of the Framework (Rizzo)

Rizzo, Mario J. "Rules Versus Cost-Benefit Analysis in the Common Law," The Cato Journal, 4, no. 3 (Winter 1985): 865-884.

Rizzo, Mario J. "Law Amid Flux: The Economics of Negligence and Strict Liability in Tort," Journal of Legal Studies, 9 (March 1980): 291-318.
 

Lecture 21: Possible Futures for Austrian Economics (Boettke)

Boettke, Peter J. "Is There An Intellectual Market Niche for Austrian Economics?," Review of Austrian Economics, Vol. 11 (1-2) 1999: 1-4.

Rosen, Sherwin. "Austrian Economics and Neoclassical Economics: Any Gains from Trade?," Journal of Economic Perspectives, 4 (1997): 139-152.

Yeager, Leland. "Austrian Economics, Neoclassicism, and the Market Test," Journal of Economic Perspectives, 4 (1997): 153-166.