The Role of Culture in Economic Action

New Thinking in Austrian Political Economy (Advances in Austrian Economics Vol. 19), eds. Christopher J. Coyne and Virgil Henry Storr, Emerald, 2015

19 Pages Posted: 14 Feb 2016

See all articles by Laura Grube

Laura Grube

George Mason University

Virgil Henry Storr

George Mason University - Department of Economics; George Mason University - Mercatus Center; University of Arizona Center for the Philosophy of Freedom

Date Written: 2015

Abstract

Culture shapes economic action and, as such, impacts economic life. Although there is a growing recognition amongst economists that culture matters, there is nothing approaching a universal agreement on how to incorporate culture into economic analysis. We provide a brief summary of how economists have discussed culture and then argue that Austrian School Economics is particularly well suited to contribute to our understanding of the relationship between culture and economic action. Indeed, Austrian economics has an advantage (1) because of its links to Max Weber's approach to social science and (2) because of its emphasis on economics as a science of meaning. A Weber-inspired Austrian economics that stresses meaning, we argue, brings a focus on culture to the fore of economic analysis and opens the door for a progressive research program within cultural economics. Austrian economists can and have made significant contributions to our understanding of the relationship between culture and economic action. Moreover, we argue, explorations of the connection between culture and economic action can be a fruitful field of study within Austrian economics.

Keywords: Culture; subjectivism; Max Weber; hermeneutics

JEL Classification: B13, B25, B53, O43, Z1

Suggested Citation

Grube, Laura and Storr, Virgil Henry, The Role of Culture in Economic Action (2015). New Thinking in Austrian Political Economy (Advances in Austrian Economics Vol. 19), eds. Christopher J. Coyne and Virgil Henry Storr, Emerald, 2015. Available at SSRN: https://ssrn.com/abstract=2731838

Laura Grube

George Mason University ( email )

4400 University Drive
Fairfax, VA 22030
United States

Virgil Henry Storr (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

HOME PAGE: http://virgilstorr.org/

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://virgilstorr.org/

University of Arizona Center for the Philosophy of Freedom ( email )

Department of History
Tucson, AZ 85721
United States

HOME PAGE: http://virgilstorr.org/

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