THE NEW SUBJECTIVIST REVOLUTION
Brief Contents
Preface
Chapter 1: Introduction
Chapter 2: The New Subjectivist Revolution of Ludwig von Mises
Chapter 3: The A Priori Categories of Human Action
Chapter 4: The Method Of Contrasting Images of Functions (1): Subjectivism in Macroeconomics and Characteristics of the Initial Image of the Market Economy
Chapter 5: The Method Of Contrasting Images of Functions (2) Using the Method of Contrast to Elucidate Crusonean Action
Chapter 6: The Method Of Contrasting Images of Functions (3): The Categories of Entrepreneurial Action Understanding Economic
Chapter 7: The Method Of Contrasting Images of Functions (4): Elucidating Characteristics of the Market Economy
Chapter 8: The Method Of Contrasting Images of Functions (5): Saving, Uncertainty-Bearing and Guaranty in a Market Economy
Chapter 9: The Method Of Contrasting Images of Functions (6): Profit and Loss
Chapter 10: The Method Of Contrasting Images of Functions (7): Entrepreneurship in the Market Economy
Chapter 11: The Method of Economic Teleology (1): Conceptualizing Individual Action
Chapter 12: The Method of Economic Teleology (2): Conceptualizing Entrepreneurship
Chapter 13: The Method of Economic Teleology (3): Creating Markets and Rights in the Market Economy
Chapter 14: Conclusion
Detailed Contents
Preface
Chapter 1: Introduction
1.The Methods of Economic Theory
a.The Method of Imaginary Constructions
i.The Method of Contrasting Images of Function
ii.The Construction of a Model of Robots
iii.The Elucidation of Entrepreneurship
iv.Elucidating Characteristics of the Market Economy
b.Economic Teleology
2.Other Issues Relating to Methodology
a.Equilibrium
b.Logic vs. Mathematics
c.Methodological Apriorism
d.Economics and Other Branches of the Study of Human Action
3.The Previous Failure of The New Subjectivism
4.Plan of This Book
a.Purpose of the Chapters
b.Rationale for Chapter Sequencing
Chapter 2: The New Subjectivist Revolution of Ludwig von Mises
1.The Old and New Subjectivism
a.The Old Subjectivism
b.The New Subjectivism
c.Methodological Apriorism
2.The Revolutionary Nature of the New Subjectivism
a.A Revolution in the Definition of Economic Phenomena
i.New Subjectivism vs. Positivism
b.A Revolution Against Elitism
3.The Definition of Economics and other Misesian Concepts
a.Theory and History
b.Praxeology, Economics and Economic Theory
c.Applied Economics or the Study of Economic History
d.Judgments and Hypothesis-Testing in Applied Economics
4.Conclusion
Chapter 3: The A Priori Categories of Human Action
1.Mises' Solution to the Problem of Intersubjective Understanding
a.The Study of Human Action by Human Actors
b.Historical Antecedents
i.Menger vs. the German Historicists
ii.Mises on the Contradiction of Historicism
iii.Mises on Weber
2.The New Subjectivism and the A Priori Categories
a.Prerequisites of Human Action
b.Ends and Means
c.Causality and Teleology
d.Time
e.Uncertainty
i.Uncertainty as an a Priori Category
ii.Intersubjective Uncertainty
iii.Errors
3.Issues Related to Methodological Apriorism
a.Other Properties of Action?
i.Attending and Learning
ii.The Problem of Habitual Behavior
iii.Behavior as Part of Action
b.Modes of Presenting the Properties of Action
c.Value Judgments and Challenges to A Priori Reasoning
Chapter 4: The Method Of Contrasting Images of Functions (1): Subjectivism in Macroeconomics and Characteristics of the Initial Image of the Market Economy
1.The Impossibility of Directly Applying Subjectivism to Macroeconomic Issues
a.Intersubjective Understanding of Actions by Subjects
b.Differences Among Subjects
c.Impossibility of Describing Everyone
d.What Kind of Descriptions Can the Applied Economist Make?
e.The Method of Contrasting Images of Functions
f.Subjectivism in the Method of Contrasting Images of Functions
2.Characteristics of the Initial Image of a Market Economy
a.A Common Denominator for Exchange
i.Valuation, Appraisement, Prices, and Profit
b.Specialization
i.Dependence and Monopoly Power
ii.Competition: Copying and Innovating
iii.Collusive Monopoly
3.
Chapter 5: The Method Of Contrasting Images of Functions (2): Using the Method of
Contrast to Elucidate Crusonean Action
1.Characteristics of an Isolated Production-Consumption Action
a.Production and Consumption
b.Identification of Factors
c.Producing Factors
i.Types of Factors
ii.The Role of Time
d.Estimating Net Benefits
e.Saving
f.Making Decisions
g.Uncertainty-Bearing as a Fundamental Characteristic of Action
i.Guaranty
h.Summary
2.The Essential Functions and Deliberation
a.Crusoe's Description of His Action
b.Identifying Non-essential Characteristics of Deliberation
3.Using The Method of Contrasting Images of Functions
a.Using the Evenly Rotating Economy to Elucidate Entrepreneurship
b.Why the Method is Called the Method of Contrasting Images of Functions
Chapter 6: The Method Of Contrasting Images of Functions (3): The Categories of Entrepreneurial Action
1.The Three Categories
a.Appraisement
b.Undertaking
c.Uncertainty-Bearing
i.Guaranty
ii.Uncertainty vs. Risk
iii.Risk-Bearing as a Non-Entrepreneurial Economic Function
d.Summary
2.A Derivation of the Categories of Entrepreneurial Action
a.The Fully Integrated Entrepreneur
b.An Enterpriser and a Hired Guarantor
i.An Enterpriser Who Does Not Bear Uncertainty?
3.The Essentiality of the Characteristics
4.Related Issues
a.The Meaning of Uncertainty-Bearing
b.Mises on Entrepreneurship
c.Roles vs. Typifications
d.Hazards of Regarding Entrepreneurship as a Function
e.Venturesomeness and Quickness of Perception
f.Production of Human Capital and Entrepreneurial Ability
Chapter 7: The Method Of Contrasting Images of Functions (4): Elucidating Characteristics of the Market Economy
1.Using the Model of the Fully Integrated Robot Entrepreneur Economy
a.Competition
i.Goods Markets
ii.Factor Markets
iii.Loan Markets
b.Consumer Sovereignty
i.Externalities and Collusion
ii.Mises' Use of the Firee
c.The Prices of Higher-Order Goods
d.The Transmission and Economization of Entrepreneurial Knowledge
2.Characteristics of the Market Economy That Cannot Be Fully Represented in a Model
a.Competition
b.Consumer Sovereignty
c.Prices of Higher-Order Goods
d.Transmission and Economization of Entrepreneurial Knowledge
i.Knowledge Transmission Between Producing Entrepreneurs and Financiers
ii.Relationships Involving Consumers and Factor-Suppliers
Chapter 8: The Method Of Contrasting Images of Functions (5): Saving, Uncertainty-Bearing and Guaranty in a Market Economy
1.Saving, Uncertainty-Bearing and Guaranty of an Isolated Actor
a.Saving and the Burden of Uncertainty
i.Saving is Always Uncertain
b.Subjectivity of Saving
c.Personal Guaranty
d.Conclusion
2.Saving, Uncertainty-Bearing and Guaranty in the Market Economy
a.The Role of Guaranty Provision in the Market Economy
i.Guaranty Defined
ii.An Image of an Economy With Lending But No Guaranty
iii.Gains Due to Guaranty
iv.More on the Concept of Guaranty
b.Lending, Guaranty and Team Production
c.Types of Guaranty
i.Non-Money Guaranty
ii.Money Guaranty
d.The Error of Confusing Uncertainty With Risk
e.Mises on Guaranty
3.Interest in the Market Economy
a.Prices of Consumers' Goods
b.Prices of Factors
c.Installment Contracts
Chapter 9: The Method Of Contrasting Images of Functions (6): Profit and Loss
1.Appraisement and Profit
a.The Appraising Entrepreneur as a Subject
i.Anticipated and Realized Profit
ii.Anticipated Profit and the Belief in One's Superiority
b.What Realized Profit and Loss Signify to the Fully Integrated Entrepreneur
c.The Appraiser as an Object
i.Subjective Profit vs. Intersubjective Rent
ii.Superior Undertaking Ability Not a Source of Anticipated Profit and Loss
2.Gambling and the Appraisement of Scientific Knowledge
a.Entrepreneurial Uncertainty and Other Types
i.Uncertainty Associated With Known Scientific Probabilities
ii.Uncertainty Due to Incomplete Scientific Knowledge
iii.Intrasubjective Uncertainty
iv.Conclusion
b.Improper Meanings of Profit and Loss
i.Entrepreneurial Profit and Loss vs. Gambling Gains and Losses
ii.Profit and Scientific Errors
iii.The Concept of Entrepreneurial Luck
3.Related Issues
a.Profit and Wealth
b.Entrepreneurship and "Prosperity"
c.Statistical Measures of Profit
Chapter 10: The Method Of Contrasting Images of Functions (7): Entrepreneurship in the Market Economy
1.Entrepreneurship Associated with Consuming Goods in the Market Economy
a.Appraisement and Undertaking in the Purchase of Durable Consumption Goods
b.Uncertainty-Bearing in the Purchase of Durable Consumption Goods
2.Entrepreneurship Associated with Saving in the Market Economy
a.Consumer-Savers as Lenders
b.Consumer-Savers as Guarantors
c.Consumer-Savers as Borrowers
3.Entrepreneurship Associated with Supplying Factors in the Market Economy
a.Suppliers of Non-Human Factors
b.Suppliers of Labor and Human Capital
i.Selling vs. Renting
ii.The Employment Agreement
4.Entrepreneurial Interaction
a.Appraisement
i.Specialization
b.Undertaking
i.Interaction Among Undertakers at Different Stages of Production
ii.Interaction Among Undertakers Who Produce Complementary Goods
c.Uncertainty-Bearing
Chapter 11: The Method of Economic Teleology (1): Conceptualizing Individual Action
1.Introduction
a.The Method of Economic Teleology
b.Coordination and Synchronization
c.The Analogy with Individual Action
d.Macroeconomic and Microeconomic Views of Economic Interaction
e.The Method of Economic Teleology in Human Action
f.Purpose and Plan of the Chapter
2.The Initial Image of Individual Action in the New Subjectivism
a.Impossibility of Forming a Complete Image of Action
b.Characteristics of the Initial Image of a Particular Action
i.Decision making
ii.An Endpoint of a Particular Action
iii.The Motivation to Act
iv.The Ending point
3.Constructing a Model of a Particular Choice
a.A Model of Choice
b.Real Choices and Hypothetical Choices
c.Deeper Models of Choice
4.The Concept of Equilibrium in a Model of Choice
a.Equilibrium Analysis
b.Repeatable and Non-Repeatable Choice Situations
c.Necessity of the Concept of Equilibrium
5.Other Concepts of Equilibrium
a.The Mathematical vs. the Logical Meaning of Equilibrium
b.The Scientific vs. the Logical Meaning of Equilibrium
6.Mathematical, Logical, and Praxeological Reasoning
Chapter 12: The Method of Economic Teleology (2): Conceptualizing Entrepreneurship
1.Introduction
2.Two Models of Coordination and Synchronization
a.A Model of Independently-Acting Robo-ents
i.Usefulness
ii.Entrepreneurship
b.A Model of Simultaneous Commitments
i.Usefulness
ii.Entrepreneurship
c.Entrepreneurship in the Market Economy vs. Robot Entrepreneurs in the Models
3.Methodological Issues
a.The Model of Coordinated Economic Choices
b.The Concept of Equilibrium
i.Real vs. Hypothetical Equilibrium
ii.Necessity of the Equilibrium Concept
iii.A Tendency Toward Equilibrium?
c.Deeper Models of Entrepreneurship
4.Assessment of The Analogy With Individual Action
a.Three Analogies
b.Dangers of Using the Logical Analogy
i.Economic Theory
ii.Applied Economics
c.Contemporary Economics vs. the New Subjectivism
i.Mathematical and Statistical Models
ii.Methodology
Chapter 13: The Method of Economic Teleology (3): Creating Markets and Rights in the Market Economy
1.Market-Creating Actions
a.Market-Creating Actions in a Simple Two-Person Exchange
b.Market-Creating Actions in a Many-Person Situation
2.Rights-Creating Actions
a.The Relevance of Rights-Creating Actions
i.Rights and the Incentive to Produce New Goods
ii.Rights and the Problem of External Costs
iii.Rights, Uncertainty and Risk
b.Rights-Creation to Deal With Uncertainty
i.Creation of Rights to Shift Uncertainty-Bearing
ii.Creation of Rights to Reduce Opportunism
c.Creation of Rights to Shift Risk
d.Interaction of Market-Creating and Rights-Creating Actions
3.The Firm
4.The Microeconomic and Macroeconomic View of Entrepreneurship
Chapter 14: Conclusion
Appendices:
1.Subjectivism and Positivism
2.Two Postulates of Subjectivism
3.Verstehen and Understanding
4.Uncertainty and Probability in Human Action
5.Mises on the Three Categories of Entrepreneurial Action
6.On Ideal Types
7.Mises on the Evenly Rotating Economy as an Endpoint
8.Menger on Rights
9.The Political Nature of Establishing Rights
References
Subject Index
Name Index