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Entrepreneurship: Catallactic and Constitutional Perspectives

20 Pages Posted: 3 Jul 2011  

Diana Weinert Thomas

Creighton University

Michael D. Thomas

Utah State University - Jon M. Huntsman School of Business

Date Written: February 15, 2011

Abstract

The most important distinction between Virginia political economy (VPE) and the other branches of public choice scholarship is a close affinity of the former to Austrian economics. Contributions in both the Virginia and the Vienna (Austrian) traditions have emphasized this connection and highlighted the analytical and ideological interdependencies of the two schools. This paper argues that an application of the Austrian theory of political entrepreneurship to the VPE framework can provide important insights regarding the direction of political change. Kirzner’s theory of entrepreneurship explains that coordination of individual action is possible where price signals provide information. Buchanan price signals are absent entrepreneurial process breaks down. There is common ground between Kirznerian entrepreneurship and Buchanan’s creative action. Scholars at the intersection of the Virginia and the Vienna traditions can use this common ground to make pattern predictions regarding the direction of political change.

Keywords: Constitutional Political Economy, Austrian Political Economy, Public Choice

JEL Classification: B25, B41, B53

Suggested Citation

Thomas, Diana Weinert and Thomas, Michael D., Entrepreneurship: Catallactic and Constitutional Perspectives (February 15, 2011). Review of Austrian Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1876625

Diana Thomas (Contact Author)

Creighton University ( email )

2500 California Plaza
Omaha, NE 68178
United States

Michael Thomas

Utah State University - Jon M. Huntsman School of Business ( email )

3565 Old Main Hill
Logan, UT 84322
United States

HOME PAGE: http://www.michaeldthomas.com

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