What is praxeology?
“It’s dangerous to look ignorant, but I suppose I will.
What is: praxeology???”
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.