The Methodology of the Austrian School of Economics
DOI:
https://doi.org/10.15678/AOC.2016.1401Keywords:
Austrian school, methodology, deduction, empirical analysis, predictionAbstract
The aim of this paper is to discuss and evaluate the main problems in the research methodology of the Austrian school of economics. This methodology is considerably different from the mainstream approach. Representatives of the Austrian school claim that research methods cannot be transferred from the natural sciences to the economic sciences. They advocate, therefore, the application of praxeology. Research should be done by means of deductive reasoning, beginning with accepted axioms. The Austrians reject the use of mathematical formalism. Instead, they propose that research should be based on realistic assumptions, verbal logic, and cause-and-effect relationships. Furthermore, they reject precise, quantitative prediction in favour of general, qualitative prediction.References
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