Neoclassical Economic Approaches to Economic Sociology

Abstract

Neoclassical economics originated in the late 1800s with the paradigm shift known today as the marginal revolution. This scientific revolution produced a variety of schools of economic thought, each with its own relationship with sociology. This chapter examines the relationship between the lines of inquiry inspired by the three founders of the marginal revolution before turning to a deeper examination of the connection between Austrian economics and economic sociology. Whereas other branches of economics obscure the nature of exchange and abstract away from the market itself, Austrian economics’ emphasis on process and purposive action especially lends itself to dialogue with sociological insight. Examination of the empirical work of Austrian economists on social relations illustrates the point.

Keywords: Economic sociology, Austrian economics

JEL Classification: Z13, B53