'Mises and Hayek Mathematized': Towards Mathematical Austrian Economics

In Per Bylund and David Howden (eds.), The Next Generation of Austrian Economics: Essays in Honor of Joseph T. Salerno. Auburn: Mises Institute 2015: 105-122.

24 Pages Posted: 6 May 2014 Last revised: 16 Jan 2017

See all articles by Marek Hudik

Marek Hudik

Xi'an Jiaotong University (XJTU) - International Business School Suzhou

Date Written: July 1, 2014

Abstract

The paper argues that the communication gap between Austrian economics and the rest of the profession could be narrowed if only the Austrians became more mathematized. Benefits as well as costs of mathematization are presented: on the one hand, mathematics is a language which is universal, more precise and more efficient than verbal language; on the other hand, mathematization may lead to a neglect of issues that are difficult to formalize, to a loss of touch with reality and to a decrease of intelligibility to lay people. It is argued that none of the costs is of such nature as to constitute an argument for avoiding the use of mathematics altogether. In particular, it is emphasized that mathematization is not in conflict with the Austrian methodology, although some aspects of Austrian economics may be at the present state of knowledge difficult to formalize.

Keywords: mathematization, formalization, Austrian economics, mathematical economics

JEL Classification: B53, B41, A11

Suggested Citation

Hudik, Marek, 'Mises and Hayek Mathematized': Towards Mathematical Austrian Economics (July 1, 2014). In Per Bylund and David Howden (eds.), The Next Generation of Austrian Economics: Essays in Honor of Joseph T. Salerno. Auburn: Mises Institute 2015: 105-122.. Available at SSRN: https://ssrn.com/abstract=2433416 or http://dx.doi.org/10.2139/ssrn.2433416

Marek Hudik (Contact Author)

Xi'an Jiaotong University (XJTU) - International Business School Suzhou ( email )

111 Ren’ai Road,
Suzhou Lake Higher Education Town,
Suzhou, Jiangsu 215123
China

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