It is a pleasure to reply to Caplan’s (1999) critique of Austrian economics. Unlike other such recent reactions1 this one shows evidence of great familiarity with the Austrian (praxeological) literature, and a deep interest in its analytical foundations. Thus, Caplan correctly identifies the works of Ludwig von Mises and Murray N. Rothbard as the core of what sets Austrian economics apart from ...

Behavioral economics confronts a problem when it argues for its scientific relevance based on claims of superior empirical realism while defending models that are almost surely wrong as descriptions of true psychological processes (e.g., prospect theory, hyperbolic discounting, and social preference utility functions). Behavioral economists frequently observe that constrained optimization of ne...

In a recent article George Boyer and Robert Smith describe the development of the neoclassical tradition in labor economics. In this paper I reexamine this subject and provide an alternative account of the evolution of thought in the field. I argue Boyer and Smith incorrectly define both the institutional and neoclassical approaches to labor market analysis. The essence of institutional economi...

Using neoclassical thought as his entry point, Yahya M. Madra offers a vital prolegomenon to recalibrated critical political economy. Madra’s reinterpretation of the economic field pivots around what he calls theoretical-humanist problematic, suggesting that an ontologically inflected recharacterization is essential any serious development progressive alternatives dominant mainstream forms Afte...

It is often argued that Richard Nelson and Sydney Winter’s evolutionary theory an alternative to neoclassical economics compatible with or complementary Veblenian economics. This article subjects such arguments critical examination. I argue while provides a more realistic account of the firm behavior than Marshallian-neoclassical does, it in much same sense as Marshall’s quasi-evolutionary, “ne...

Walrasian tâtonnement has been a fundamental assumption in economics ever since Walras’ general equilibrium theory was introduced in 1874. Nearly a century after its introduction, Vernon Smith relaxed the Walrasian tâtonnement assumption by showing that neoclassical competitive market theory explains the equilibrating forces in “double-auction” markets. I make a next step in this evolution by e...

This paper is a critical review of and a reader’s guide to a collection of papers by Robert E. Lucas, Jr. about fruitful ways of using general equilibrium theories to understand measured economic aggregates. These beautifully written and wisely argued papers integrated macroeconomics, microeconomics, finance, and econometrics in ways that restructured big parts of macroeconomic research. 1 Arro...

This course introduces students to the field of ecological economics and explores how the field's simple premise — to recognize the fundamental dependence of the economic system on the environment — complicates matters for conventional economic theory and practice. While focusing on ecological economics, the intent is to expose students to a variety of thought on the theoretical relationship be...