This paper attempts to grapple with the market mechanism through which growth in one sector of the economy spreads to other sectors. It calls into question Baumol's argument for subsides to the arts and by extension, to other economic areas that have not enjoyed productivity increases

How do neoclassical economists reply to Austrian critiques of their work? Typically, although to be sure there are exceptions, they ignore them. That is, the former move mountains in an effort to avoid the arguments of the latter. Sometimes this occurs even when neoclassicals explicitly reply to...

Mention "free market advocate" or "defender of private property rights" and the name Ronald Coase is certain to be included in the top ten list of virtually all cognoscenti of such matters. Nor can it be denied that there are numerous good and sufficient reasons for this assessment....

This papers attempts to show that the neoclassical analysis of monopsony is erroneous. We deal with this issue under two sub-headings: those compatible with mainstream economics, and those that are not. In the first category are: paucity, wrong target, temporariness, limited window, complexity,...

Cowen (1997) criticizes Austrian Business Cycle Theory (ABCT) on eight grounds: 1. systematic errors; 2. inflation volatility; 3. confusion of inflation and savings; 4. confusion of inflation and investment; 5. real vs. nominal rates of interest; 6. interest rate information; 7. investor...

The triangle is an integral part of the history of economic thought. It has been used by writers such as Jevons (1871), Taussig (1896), Wicksell (1934, 1969) to illustrate and to help us understand capital theory. Since Hayek (1931) this geometrical figure has been used as a basic pedagogical...

Jeffrey Rogers Hummel criticizes Austrian Business Cycle Theory (ABCT), and it is our intent in the present article to reply to his criticisms, defending this viewpoint against the difficulties he raises with it. Hummel sees six separate problems with the Austrian or praxeological analysis of...

There is at the very least a tension between the two basic building blocs of Austrian economics. The doctrine of singularism maintains that is inevitably and necessarily between two and only two things: that which is chosen, and the next best alternative, which is set aside. However, implicit in...

We argue in this paper that the last best hope for economic prosperity is a system based on private property rights, capitalism and limited government. One of the reasons for this claim is that, in such a system, in contrast to one in which the state plays a large role, when mistakes are made,...