Comparing alleged incommensurables: Institutional and Austrian economics as rivals and possible complements?^∗

^∗ This article was originally presented at the European Association of Evolutionary Political Economy conference in Florence, Italy, November 1990. The author is grateful to the participants, who were in attendance at his session at his session, for the interesting discussion which ensued.

Abstract

The purpose of this article is to explore the changing relationship between Austrian and Institutional economics and the common ground that they appear increasingly to share. It is maintained that both parties have something to learn from each other - there are gains to be made from intellectual trade and inter-research tradition discourse. Neither Austrian economics nor institutional economics presently provides a sufficiently robust or sophisticated approach to individual and group problem-solving activity within institutional-knowledge constraints and historical time dynamics, yet they are both beginning to seriously grapple with such issues. The gulf between the Austrian and Institutional research traditions is narrowing given that there is some convergence toward a middle ground where it is recognized that individuals do not exist in a vacuum and that institutions both constrain and enable purposeful behaviour. Through increased interaction Austrians may learn to take ‘institutional’ frameworks even more seriously whilst Institutionalists may learn to be even more earnest in their treatment of ‘individual’ action within a historical time continuum.

^∗ This article was originally presented at the European Association of Evolutionary Political Economy conference in Florence, Italy, November 1990. The author is grateful to the participants, who were in attendance at his session at his session, for the interesting discussion which ensued.

^∗ This article was originally presented at the European Association of Evolutionary Political Economy conference in Florence, Italy, November 1990. The author is grateful to the participants, who were in attendance at his session at his session, for the interesting discussion which ensued.

Notes

^∗ This article was originally presented at the European Association of Evolutionary Political Economy conference in Florence, Italy, November 1990. The author is grateful to the participants, who were in attendance at his session at his session, for the interesting discussion which ensued.