In this paper we revisit the case for methodological individualism for the positive analysis of political economy. We argue that the basis of methodological individualism implies neither a necessary commitment to atomistic reductionism in explaining social phenomena nor philosophical...

This paper argues that liberty and progress arose due to the generalized increasing returns to economic activity. These increasing returns follow from the gradual, cumulative process of institutionalizing liberties. As a society adopts an institutional framework from accumulated liberties, there...

Our contribution in this chapter is to address the argument made by philosopher Samuel Freeman (2001) that libertarianism is not a liberal view. Freeman’s argument is based on the claim that full alienability of property rights is antithetical to liberal political institutions. We address...

The systematic study of political economy begins with the recognition of two seemingly contradictory observations about commercial life. The first observation is that individuals pursue their self-interest and do so as effectively as they are capable of doing. The second observation is that...

While markets are all around us, not all markets are the same. Markets come in a variety of colors based on the legality of activities in the specific market. As such, there is no market economy per se, but instead various shades of markets. The different shades of markets that are evidenced in...

The current approach to the war on terror is largely ineffective. Central to this approach are negative sanctions against actual and potential terrorists coupled with attempts to spread liberal democracy through war, occupation, and reconstruction. We argue that negative sanctions are...

F. A. Hayek's contribution to economic science is broadly remembered as relating to the “use of knowledge in society” but his contribution to economics of knowledge are often summarized differently. We emphasize the contextual nature of the knowledge. Hayek says the market economy is capable...

This paper explores the problem of credible commitment that public officials face with regard to institutional reform. Doug North points out that while economies grow as a result of the provision of governance, I argue that creating an entity with a geographic monopoly simultaneously limits the...

In the midst of the current financial crisis the economics profession has seen a monumental resurrection of Keynesian ideas. The debate, which Keynes started back in the 1930s, is being picked up again, not where it left off, but in exactly the same place it started. While Keynesian theories...

Teaching Austrian economics to graduate students is an important part of spreading the ideas of Austrian economics throughout the profession. In the classroom, it is important for graduate students to not only master the ideas of Austrian economics but also to train them to become productive...