Israel Kirzner's Use of Narratives to Illuminate the Limitations of Neoclassical Economics and the Austrian Alternative

Abstract This article investigates how Israel Kirzner approached mainstream economists with his view of the Austrian theory. It discusses role narrative elements in Kirzner's theory use stories to illuminate ideas entrepreneurship, firm, and knowledge problem. argues that made more open dialogue without tying him scientific demarcation criteria used economics. The narratives work allow (i) emphasize logical order economic phenomena, (ii) highlight causal mechanisms theory, (iii) make some generalizations but perfect predictions economics, (iv) explore different scenarios from contingent events economy, (v) illustrate fictional plausible cases. concludes these aspects help limitations neoclassical economics offer an alternative perspective based on entrepreneurial state “alertness” point view.