The Subjectivist Methodology of Austrian Economics and Dewey's Theory of Inquiry

Abstract

The aim of this paper is to elaborate on the Austrian school’s methodological orientation, which they named “subjectivism,” in a way that shows its affinity with the main thrust of John Dewey’s notion of the logic of inquiry. It is trying to make two distinct but related points. First, it is trying to clarify what “subjectivism,” the central methodological principle of Austrian economics, really means, or at least what we think it should mean. It can be understood as a challenge to the “objectivistic” attitude of mainstream economics, the attitude that the Austrians argue is what is keeping economics too disconnected with the everyday world. Second, the paper is trying to show that the confusions that have arisen around the Austrians’ own method might be cleared up if we were to draw from Dewey’s work.

JEL Classification: B53