Was Ludwig Von Mises a conventionalist ? : a new analysis of the epistemology of the Austrian school of economics

This book presents a concise introduction to the epistemology and methodology of the Austrian School of economics as defended by Ludwig von Mises. The author provides an innovative interpretation of Mises’ arguments in favour of the a priori truth of praxeology, the received view of which contributed to the academic marginalisation of the Austrian School. The study puts forward a unique argument that Mises – perhaps unintentionally – defends a form of conventionalism. Chapters in the book include detailed discussions of individualism, historicism, epistemological positions, and essentialism. The author goes on to discuss Mises’ justification of the fundamental axiom and proposes a conventionalist interpretation. By presenting praxeology as a conventionalist research programme, the author aims to reinvigorate the interaction between the Austrian School, mainstream economics, and the philosophy of science. This comprehensive reconstruction is suitable for economists interested in the history and philosophy of their discipline, as well as for philosophers of science. Was Ludwig von Mises a Conventionalist? 4 Acknowledgements 6 Contents 7 1 Introduction: The Political Context of Mises’ Methodology 10 Notes 13 2 Mises and the Problem of Induction 15 2.1 Mises’ Problem Situation 15 2.2 Anti-Naturalism 18 2.3 Methodological Dualism 21 2.4 Individualisms 25 2.4.1 Political Individualism 25 2.4.2 Methodological Individualism 25 2.4.3 Ontological Individualism 28 2.4.4 Consequences for the Problem of Induction 29 2.4.5 Individualism and Economic Practice 31 2.5 Further Traits of Mises’ Philosophy of Science 34 Notes 38 3 Final Destination Relativistic Historicism? 42 3.1 The Method of Historical Understanding 42 3.2 Mises and Historicism 46 Notes 48 4 Praxeology as an Alleged Solution of the Problem of Induction 49 4.1 The Idea of Praxeology and Its Justifications 49 4.2 The Axioms 51 4.3 Rational Action 56 4.4 Praxeology and Thymology 58 Notes 61 5 A Classification Scheme for Epistemological Positions 63 5.1 Theoretism and Empirism: An Epistemological Dilemma 64 5.2 Eight Epistemological Positions 67 5.2.1 Naive Inductivism: ((IND)˄(FULL)˄(EMP)˄(THEO)˄¬(LOG)) 67 5.2.2 Strict Positivism: ((IND)˄(FULL)˄(EMP)˄¬(THEO)˄(LOG)) 68 5.2.3 Apriorism: ((IND)˄(FULL)˄¬(EMP)˄(THEO)˄(LOG)) 69 5.2.4 Probability Positions: ((IND)˄¬(FULL)˄(EMP)˄(THEO)˄(LOG)) 69 5.2.5 Pseudo-Sentence Positions: ((IND)˄¬(FULL)˄(EMP)˄¬(THEO)˄(LOG)) 71 5.2.6 Conventionalism: ((DED)˄(FULL)˄(EMP)˄¬(THEO)˄(LOG)) 72 5.2.7 Intuitive Universalism/Essentialist Positions: ((DED)˄(FULL)˄(EMP)˄¬(THEO)˄(LOG)) 74 5.2.8 Hypotheticism/Critical Rationalism: ((DED)˄¬(FULL)˄(EMP)˄(THEO)˄(LOG)) 75 Notes 76 6 A Conventionalist Interpretation of Mises’ Justification of the Fundamental Axiom 79 6.1 First Steps in Classifying Mises’ Epistemological Position 79 6.2 What Mises’ Fundamental Axiom Is Not 81 6.2.1 Methodological Principle 81 6.2.2 Observation, Introspection, Experience 84 6.2.3 Genetic or Psychological A Priori 85 6.2.4 An Interim Result 87 6.3 Praxeology as Analytic Conceptual Analysis 87 6.4 The Truth of the Fundamental Axiom: Synthetic or Analytic? 89 6.4.1 Mises’ Defense of Praxeology 89 6.4.2 Synthetic Apriorism: A Critique of the Standard View 92 6.4.3 Mises as a Conventionalist Against His Will 94 Notes 96 7 Praxeology as a Conventionalist Research Program 98 7.1 Broadening Mainstream Engagement with the Austrian School 99 7.2 Modern Formal Methods: Formal Logic, Mathematics, and Game Theory 104 Notes 109 8 Essentialism in the Austrian School 111 8.1 Other Defenses of Praxeology 111 8.2 Essentialism in the Austrian School 114 Notes 116 9 Recapitulation and Final Thoughts 117 Note 121 10 Appendix: Some Basic Concepts of Philosophy of Science 122 Notes 129 References 132 Index 150 Linsbichler's erudite new book is not only an invitation for Austrian economists to reconsider their Misesian methodological foundations, but more importantly an attempt to bridge the methodological gap between the Austrian School and mainstream economics. His charitable reading of Mises provides the basis for an original conventionalist interpretation of Mises' methodology, but it is most of all his anti-dogmatism, methodological openness and call for intellectual humility that stand out. --Erwin Dekker, Assistant Professor of Cultural Economics (Erasmus University Rotterdam) This book proposes new solutions to interpretational problems of Mises' methodological position. It also o­ffers a lucid and scholarly introduction to some important problems of the logic of science. Specialists and general readers alike will profit much from reading that book. --Karl Milford, Associate Professor in History of Economic Thought and Philosophy of Economics (University of Vienna) This innovative book challenges the mainstream reading of Ludwig von Mises as a contested "a priori" proponent of the Austrian School of economics. It o­ffers new insights to Mises' methodology and epistemology by interpreting his praxeology as conventionalist. In doing so the author opens novel perspectives for contextualizing Ludwig von Mises' work in the history of the Austrian School and the long term "Methodenstreit" since the 19th century. --Friedrich Stadler, Professor for History and Philosophy of Science (University of Vienna), Head and Director of the Institute Vienna Circle, President of the Austrian Ludwig Wittgenstein Society This book presents a concise introduction to the epistemology and methodology of the Austrian School of economics as defended by Ludwig von Mises. The author provides an innovative interpretation of Mises' arguments in favour of the a priori truth of praxeology, the received view of which contributed to the academic marginalization of the Austrian School. The study puts forward a unique argument that Mises - perhaps unintentionally - defends a form of conventionalism. Chapters in the book include detailed discussions of individualism, historicism, epistemological positions, and essentialism. The author goes on to discuss Mises' justifi cation of the fundamental axiom and proposes a conventionalist interpretation. By presenting praxeology as a conventionalist research programme, the author aims at reinvigorating the interaction between the Austrian School, mainstream economics, and the philosophy of science. This comprehensive reconstruction is suitable for economists interested in the history and philosophy of their discipline, as well as for philosophers of science Front Matter....Pages i-ix Introduction: The Political Context of Mises’ Methodology....Pages 1-5 Mises and the Problem of Induction....Pages 7-33 Final Destination Relativistic Historicism?....Pages 35-41 Praxeology as an Alleged Solution of the Problem of Induction....Pages 43-56 A Classification Scheme for Epistemological Positions....Pages 57-72 A Conventionalist Interpretation of Mises’ Justification of the Fundamental Axiom....Pages 73-91 Praxeology as a Conventionalist Research Program....Pages 93-105 Essentialism in the Austrian School....Pages 107-112 Recapitulation and Final Thoughts....Pages 113-117 Appendix: Some Basic Concepts of Philosophy of Science....Pages 119-128 Back Matter....Pages 129-151