What is praxeology?

Commenter ‘Bruce‘ at Free Advice asks:

“It’s dangerous to look ignorant, but I suppose I will.

What is: praxeology???”

 

My response:

It’s the deductive method of Austrian economics. It starts with the premise that persons act, that actions are purposeful, they involve the use of a means to attain a end and are motivated by that end. It goes on to deduce conclusions from this premise through the use of logic: if a premise is true, and valid logic is applied, then the conclusion must also be true. Logical chains can be formed by using the old conclusion as a new premise and then again using valid logic. Austrians have used this method to explain marginal utility, the law of demand, how the business cycle occurs, and much more.

If you’re looking for an introduction to the type of reasoning used by Austrian economists, you can look at An Introduction to Economic Reasoning by David Gordon or look at praxgirl‘s videos on YouTube. If you’re interested in reading about Austrian economics in depth, you can look at Man, Economy, and State by Rothbard.

A guest also posts a link to a youtube video lecture I would highly recommend: Is Austrian Economics ‘Unscientific’? Here, Dr. Jeffrey Herbener compares and contrasts Austrian economics with the natural sciences, statistics, and morality. He also explains the methodology in an easily understandable way.

Advertisements

Posted on February 28, 2013, in Economics and tagged , , , , , . Bookmark the permalink. 2 Comments.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: