In the process of laying out their argument against socialist central planning, Mises and Hayek would be led to make stunning discoveries of the crucial features of the price system and the market economy. Mises would come to emphasize the fundamental role of economic calculation, whereas Hayek would come to emphasize how this process of economic calculation enables economic actors to discover, mobilize and utilize the dispersed knowledge in an economy. [Full article]
Source link: http://blog.mises.org/2642/hayek-and-market-socialism-science-ideology-and-public-policy/
Hayek and Market Socialism: Science, Ideology, and Public Policy
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The paper cited by Dr. Boettke entitled “The New Comparative Economics” by Djankov, Glaeser, La Porta, Lopez-de-Silanes, and Shleifer (2003) is quite an interesting one. It is most probably the first Harvard Institute for Economic Research paper in a long while to actual cite Mises:
“Politics has a bad name in economics. From Marx (1872), to the Austrians (von Mises 1949, Hayek 1960), to institutional economists (Olson 1965, 1982, North 1990), to public choice scholars (Buchanan and Tullock 1962), to regulation economists (Stigler 1971), to political historians (Finer 1997), writers on institutions have maintained that political choice is often responsible for institutional inefficiency. Generals, dictators, ascendant social classes, democratic majorities, and favored interest groups all choose institutions that entrench them in power, so that they can collect political and economic rents. Constitutions, voting rules, federalist arrangements, organization of army and police are selected by incumbents to keep themselves in power.”
The paper can be found here.
Justin Ptak
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