Comments (10)

• Gustavo Sosa

  Thanks, Mr. Block, for your letter. If you don't mind, I still have a question.

  I really need an online program. Is there anyone else besides Touro's MBA? Maybe something strictly in Economics, even if it is not Austrian?

  Published: May 30, 2008 9:46 AM

• Inquisitor

  Does anyone know of good unis to do an Msc in Finance with an Austrian bent?

  Published: May 30, 2008 1:31 PM

• Dropout

  Thank you for this letter Prof. Block. I was enrolled in the PhD program at one of the Ivy League universities a couple of years ago but as my name indicates I dropped out. Believe it or not, but the same summer I completed my qualifying examinations I came across a copy of Human Action, which was my introduction to the Austrian school. Learning more about the Austrian school eliminated all the inconsistencies I was seeing in the mainstream paradigm and for the first time I "got" economics, despite having studied it for the past 8 years or so. Recently I've been thinking about finishing my dissertation, but only at a university where Austrian economics is treated respectfully, and not as a "fad" as my old advisor called it. This letter is well timed and will allow me to see the options that are available to me at this time. Thanks again.

  Published: May 30, 2008 2:59 PM

• newson

  to inquisitor:
  i think the austrians would find the efficient market hypothesis a bit of a laugh. and like economics, the finance mob have modelled their tools from physics (i'm thinking particularly of derivative models). brownian motion's great for gas molecules, but won't save you when liquidity dries up and you cannot dynamically adjust your derivative portfolio. the quants are still trying to come up with an equation to describe s*** as it hits the fan.

  i suppose it's good to understand the models to realize their flaws, but as for real learning...

  Published: May 31, 2008 9:04 AM

• Koen Deconinck

  I guess that there is also a strategical choice to make, so to speak. Perhaps it's better if we tried to obtain degrees from mainstream universities, even get tenured if possible, and then transform the field from within. I don't know if that's realistic or not.

  In all cases, I wouldn't recommend anyone to study economics at a university where maths, statistics and econometrics are not in the curriculum. (Okay, I've used double negations here so let me rephrase that: please, go study econometrics, all ye Austrians!). I can imagine it's very interesting to study Austrian economics full time, but if you want to be able to discuss "mainstream" economists, you'll have to know what the models can, and cannot do, you'll need a good deal of maths etc.

  The same goes for all those advanced mainstream theories, no matter how far-fetched these may seem. A lot of macro might seem ridiculous for instance, but I believe that a good Austrian economist should study these theories intensely and engage them on their own terms (I believe Garrison has done this in a very interesting way in Time and Money, by the way.)

  Published: May 31, 2008 4:54 PM

• Bryan

  Thank you for the advise Dr. Block.

  I think a lot of the complex finance math has come into use because of too much liquidity in the system (courtesy of the central banks). Hedge funds (not something which would normally play a big part in free markets) are making killer profits and this is one area of finance which is one of the most complex and mathematical.
  My friend is writing a Phd in Venture Capital Contract evaluation, using a lot of math and statistics.

  I don't necessarily think of application of Math and statistics in economics as useless. Infact, if one really understands Austrian economics then its a great Phd topic to provide statistical evidence for many of the austrian claims, or refute the mathematical flaws in Keynesian economics, etc.

  Bryan,
  United Kingdom.
  bryan1410 at hotmail dot com

  Published: June 1, 2008 4:32 PM

• Brent

  I'd like to add that I think it is necessary to engage in mathematics and statistics, too. Like Rothbard said, you have to know what (most) economists know, in order to engage in the debate (paraphrased). I think it is especially important for Austrians to understand aand even use ststatistics when appropriate.

  Unfortunately, some people are not very good with mathematics and statistics, even though it is just logic applied to the manipulation of numbers and curves. This is too bad, because I believe someone can be a good economist, in spite of not having great mathematical and statistical skills.

  Crucially, I also fail to see how the (particularly micro) calculus is useful to a good economist. I've been through the standard courses for a masters program and all I've seen these techniques used for could be summed up as "cats chasing their tales" (circular reasoning, mathematically "proving" what was already assumed and/or obvious from the beginning). In addition, the simplest and most important concepts can all be done using algebra, while the harder calculations use calculus, but are worthless to an actual economist.

  Anyway, that's my two cents. As always, Dr. Block did a great job showing what's available for prospective students.

  Published: June 1, 2008 8:01 PM

• Colin

  Thank you for posting this. I'm currently out of school a few years (construction management & engineering degree). I have a great consulting job that makes great money.

  But something just isn't clicking in terms of satisfaction. I'm trying to figure out how I can move more towards liberty in my career. I am considering various graduate degrees or how I can just use my spare time and relatively deep knowledge of construction to promote liberty.

  This was helpful in understanding the economics route.

  Published: June 2, 2008 10:05 PM

• Daniel J. D'Amico

  John Nye is no longer at Wash U. He is now at GMU

  Published: June 4, 2008 1:03 AM

• Nathanael Snow

  I have just accepted an offer to study at GMU, after graduating from NC State.
  First, I can't say enough good things about Margolis and Cordato. Margolis is no longer Department Chair, but his courses at the undergraduate level included plenty of Alchian, Demsetz, David Friedman, and Posner, who visited a year ago. Also at NCSU but not mentioned here are Craig Newmark, who will be teaching the Ayn Rand course through BB&T grant, Chuck Knoebber, and now Rick Stroup, in an adjunct role. The Pope Foundation in NC is a big supporter of Free Market thinkers, and does lend financial support to graduate students.
  NC State also has a unique pre-core year for students deficient in math. It sets up students to do well in the real Ph.D. track. The micro course uses the same text GMU is using for Math for Economists (Nichols), but the macro is nothing but models and math.
  Most of the faculty can be sympathetic to Austrianism, and always was willing to have a conversation. Even Michael McElroy who teaches IS/LM to intermediate Macro undergrads gives great attention to Hayek.
  This program recently placed a student focused on ideas very well.

  Published: June 17, 2008 3:27 PM