The Subjective Theory of Value and the Incompleteness of Austrian Economic Theory

2017 ◽  
Author(s):  
Richard Stomper
Keyword(s):  
Economic Theory ◽  
Austrian Economic ◽  
Subjective Theory ◽  
Theory Of Value

Austrian Methodology

2015 ◽  
pp. 12-42
Author(s):  
Adam Martin
Keyword(s):  
Economic Theory ◽  
Austrian Economic ◽  
Social Ontology ◽  
Social Processes ◽  
Spontaneous Order ◽  
Ludwig Von Mises ◽  
Key Concepts ◽  
Carl Menger ◽  
Von Mises ◽  
Friedrich Hayek

This chapter offers a synthetic account of the key methodological ideas espoused by prominent Austrian economists. It focuses on the contributions of Carl Menger, Ludwig von Mises, Friedrich Hayek, Ludwig Lachmann, and Donald Lavoie, arguing that epistemological concerns fail to encapsulate their overlapping but distinctive and complementary methodological arguments. Their methodological positions are better explained as flowing from a shared and distinctive social ontology that underlies Austrian economic theory. Austrian social ontology is distinct because of its commitment to three key concepts: radical subjectivism, sheer ignorance, and spontaneous order. The chapter then presents a stylized schema of social processes that embodies these key concepts and shows that the schema both accommodates distinctively Austrian theories and allows for a synthesis of the key methodological contributions of all the Austrian economists discussed earlier.

The Subjective Theory of Value and Accounting "Cost"

Economica ◽  
1946 ◽  
Vol 13 (49) ◽  
pp. 32 ◽  
Author(s):  
G. F. Thirlby
Keyword(s):  
Subjective Theory ◽  
Theory Of Value

“But one kind” of Life

2016 ◽  
Vol 70 (4) ◽  
pp. 448-472
Author(s):  
Seth McKelvey
Keyword(s):  
Free Market ◽  
Best Interests ◽  
Market Exchange ◽  
Related Concept ◽  
Material Wealth ◽  
Subjective Theory ◽  
Diminishing Marginal Utility ◽  
Theory Of Value ◽  
Carl Menger ◽  
Definition Of

Seth McKelvey, “‘But one kind’ of Life: Thoreau’s Subjective Theory of Value in Walden” (pp. 448–472) Literary scholars generally take for granted Henry David Thoreau’s hostility to market exchange in Walden (1854). I argue, however, that Thoreau anticipates the subjective theory of value and the related concept of diminishing marginal utility, offering glimpses of ideas that would not be formalized in economics until after his death but that should nevertheless align him with a long lineage of free market thinkers. Thoreau does not reject the marketplace as a means to achieve his own best interests, but rather challenges his society’s definition of what those interests should be, attacking the misguided desire to accumulate excessive material wealth and the burdensome labor that attends such aspirations. I juxtapose the economics put forth in Walden with the work of Austrian free market economist Carl Menger in order to illustrate how Thoreau can so vehemently oppose the materialistic obsessions of capitalism while simultaneously remaining amenable to the principles of free exchange.

The Early Mathematics of Welfare

2020 ◽  
Vol 52 (4) ◽  
pp. 683-707
Author(s):  
Mario Pomini
Keyword(s):  
Economic Theory ◽  
Social Welfare ◽  
Social Welfare Function ◽  
Welfare Economics ◽  
Economic Planning ◽  
Mathematical Tool ◽  
Early Mathematics ◽  
Subjective Theory ◽  
De Finetti ◽  
Laissez Faire

Bruno de Finetti (1906–1985) is well known as the founder of the subjective theory of probability. Less known is his contribution to economic theory. The article presents the contributions of de Finetti in the field of welfare economics. He advanced a new mathematical tool: the theory of simultaneous maxima. On this base, he criticized the laissez-faire interpretation of the Paretian theory and advanced the idea of a social welfare function, reflecting the debate on economic planning among Italian corporatist economists.

scholarly journals Sraffa and the Labour Theory of Value: a note

2019 ◽  
Vol 39 (4) ◽  
pp. 614-637
Author(s):  
FABIO ANDERAOS DE ARAUJO
Keyword(s):  
Economic Theory ◽  
Income Distribution ◽  
Technical Progress ◽  
Maximum Rate ◽  
Major Work ◽  
Consistent Solution ◽  
Work Production ◽  
Theory Of Value ◽  
David Ricardo ◽  
Production Prices

ABSTRACT The author seeks to demonstrate that the price system proposed by Piero Sraffa in his major work Production of Commodities by Means of Commodities - Prelude to a Critique of Economic Theory is compatible with both David Ricardo and Karl Marx’s labour embodied theory of value and with Adam Smith’s labour-commanded theory of value. In reality, Sraffa’s measure of prices, the Standard Commodity, satisfies rigorously the mathematical condition of invariability in relation to income distribution between wages and profits. In this sense, it offers a consistent solution to the transformation problem of embodied labour values into production prices. Besides, the Standard ratio or the maximum rate of profits R can be used to analyse the evolution of the three major types or forms of technical progress in a capitalist economy, as follows: labour-using, neutral and capital-using techniques.

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