Public choice relies heavily on equilibrium analysis in its models of government failure. Austrians are suspicious of equilibrium analysis owing to its reliance on some variant of the perfect-knowledge assumption. To what extent then can Austrians consistently embrace public-choice descriptions...

Not only do government interventions tend to compromise the knowledge-utilizing properties of the price system, they also impinge directly and in important ways on local knowledge, or Hayek's "knowledge of the particular circumstances of time and place." This local knowledge includes norms and...