The rise of new classical economics

vrije Universiteit amsterda

The methodology of the neo-Austrian research programme

Since the 1970s the Austrian school of economics has experienced a modest revival. lts main ideas, notably on the dispersion of knowledge and the social-evolutionary theory of institutions, have given it (at least on these topics) a possible way back into the spotlights of economics. However, there are some aspects of 'Austrianism ' which seem to clash with mainstream views. In particular, these ideas concern methodological and philosophical (more specifically, epistemo-logical) issues. As White (1984) has shown, differences of opinion with regard to methodology and particularly epistemology belong very much to the tradition of the Austrian School. Austrians have based their methodological views on very divergent epistemological foundations. Even the older Austrians did not agree on this point.2 Nevertheless, despite these differences, one may maintain that Austrians adhere to more or less the same methodology. It has been depicted as idiosyncratic and mistaken. Some (even famous) historians of economie thought think that the apriorism on which it is based, is "... a throwback to the Neanderthal 'essentialism ' of yesterday" (Blaug (1980b, p. 273)). More recently, other philosophers and methodologists have relaxed this harsh judgment. The main purpose of this survey will be to give an account of Neo-Austria