2. The view from Vienna: An analysis of the renewed interest in the Mises-Hayek theory of the business cycle
5. The rise and fall of the subsistence fund as a resource constraint in Austrian business cycle theory
7. Nancy Bermeo and Larry M. Bartels (Eds.), Mass politics in tough times: Opinions, votes, and protest in the great recession
New working paper with Eduard Braun and Peter Lewin about how Mises’s treatment of the concept of “capital” can be a bridge between Austrian Economics and Institutional Economics.
Ludwig von Mises seems to be something of an outlier within the Austrian school when it comes to capital – though his position is clearly foreshadowed in a neglected article by Carl Menger (1888). In this paper we examine Mises’s view on capital and suggest that it constitutes a bridge between Austrian and institutional economics. As an outflow of Mises’s approach, an incipient financial approach may be discerned, an approach to capital that integrates concepts from financial theory into a broader view of capital that contains both institutional and Austrian elements.
Working paper junto a Peter Lewin donde una vez más trabajamos con la interesección entre finanzas y teoría del capital. En esta ocasión ponemos la atención en un intercambio entre Hodgson y Braun sobre la importancia de entender “capital” con un punto de vista financiero.
En nuestro paper seguimos la recomendación en general del Hodgson y Braun pero extendemos su aplicación haciendo uso de conceptos financieros como duration.
We agree with the recommendations of Hodgson (2014) and Braun (2015) to shift the focus away from capital as physical production-goods back to the common-sense and historical understanding of capital as money-borrowed for the purpose of acquiring productive resources to produce value. Much controversy, obscurity and confusion might have been avoided with this focus. The colloquial understanding of capital as financial-capital is to preferred to thinking of capital as a collection of physical things. A consideration of the role of time in production brings one to the realization that capital is the result of a process of evaluation, the result of ‘capital-accounting’. It is the ability to use capital-accounting that is in large part responsible for the phenomenal success of capitalism. Productive physical resources are all capital-goods, or preferably production-goods. They are different types of production-goods, human or non-human, and constitute a stock of potential value over time.