The austrian school and its critique of a standard mathematical approach to economics

Abstract

The main aim is to identify a few of the methodological principles with which most Austrians are in agreement and which are the most relevant to an explanation of the Austrian attitude to the use of mathematics and econometrics in economics. This paper can be roughly divided into three parts. In the first part the author defines the position of Austrian economics in economic theory as such and tries to relate the main methodological principles as subjectivism, individualism and attention on process rather than equilibrium states to the question of the possibility to grasp the economic problems by the use of the methods of natural sciences. In the second part the author elucidates Austrians' objections to the use of mathematics and econometrics (dispersed knowledge, critique of the law of large numbers, continuous smooth functions etc.) and in the final part deals with more or less practical problems of statistical measurement.Austrian school, mathematics, econometrics, statistical aggregates, individualism, subjectivism, process, knowledge