Ludwig Lachmann looked to the Austrian School of economics as an intellectual space of refuge from the sterile formalism that constituted the academic work of the mainstream economics establishment. From an early interest in capital-theory, he moved to broader epistemological, methodological, and institutional concerns – specifically, from the subjectivism of values to the subjectivism of expectations and the implications thereof for human action. Human action in disequilibrium was his central focus. This paper examines the relationship of Lachmann’s (...) views to the Austrians, those who preceded him, those of his time, and those who have come after him. During his lifetime his views sometimes provoked controversy. I examine this from the perspective of 2017 and the concerns of the modern Austrian intellectual community and find that Lachmann’s views are surprisingly much more complementary to those of his contemporary Austrians than has perhaps hitherto been realized. (shrink)

The legacy of Ludwig Lachmann within the Austrian School of Economics is subject to several interpretations in the literature: though he clearly considered himself a member of the school and he influenced many Austrian economists, his particular methodological claims prompted Murray Rothbard to disavow him as a nihilist. In this article, we defend Lachmann by arguing that in order to defend his methodological stance he invoked extra-Austrian influences (Max Weber, G.L.S. Shackle). This way, he championed subjectivist institutionalism (...) consistently both in theory and in practice. His approach leaves a peculiar, unorthodox, yet positive legacy for contemporary Austrian economics, not so far from the orthodox Misesian stance as it is broadly understood. (shrink)

One of the distinctive features of the Austrian School of Economics has been its emphasis on the entrepreneur as central to the market process. One 20th century Austrian whose work is normally not thought of as making a major contribution to the Austrian theory of entrepreneurship is Ludwig Lachmann. However, a careful reading of his 1956 book Capital and its Structure can tease out a theory of the function of the entrepreneur that is distinctly different from that of (...) Israel Kirzner, yet still clearly situated in an Austrian conception of the market process. In this contribution, I want to emphasize two points that have been raised by previous work on Lachmann, but not explored in any detail. The first is that Lachmann’s conception of entrepreneurship is deeply bound up with the need to engage in monetary calculation thanks to the heterogeneity of capital and uncertainty of the future. For Lachmann, the key function of the entrepreneur is to “specify” the uses of capital goods. Such specification requires the use of money prices and what Mises called monetary calculation. The second contribution is to offer more detail on the way in which entrepreneurs both creatively specify and re-specify the uses of their capital goods in response to profit and loss signals. The constant shuffling and reshuffling of capital goods, of which coming up with new products or new twists to old ones are a part, is the essence of Lachmann’s implicit vision of entrepreneurship. For Lachmann, entrepreneurship is bound up with resource ownership and deployment through the creation and revision of plans in ways that are much more active than Kirzner’s conception of the entrepreneur. (shrink)

SUBJECTIVISM, INTELLIGIBILITY AND ECONOMIC UNDERSTANDING: ESSAYS IN HONOR OF LUDWIG M. LACHMANN ON HIS EIGHTIETH BIRTHDAY Edited by Israel M. Kirzner New York: New York University Press, 1986. 319 pp., $35.00.

THE MARKET AS AN ECONOMIC PROCESS by Ludwig M. Lachmann New York: Basil Blackwell, 1986. 173 pp., $29?95.

This chapter offers a synthetic account of the key methodological ideas espoused by prominent Austrian economists. It focuses on the contributions of Carl Menger, Ludwig von Mises, Friedrich Hayek, Ludwig Lachmann, and Donald Lavoie, arguing that epistemological concerns fail to encapsulate their overlapping but distinctive and complementary methodological arguments. Their methodological positions are better explained as flowing from a shared and distinctive social ontology that underlies Austrian economic theory. Austrian social ontology is distinct because of its commitment (...) to three key concepts: radical subjectivism, sheer ignorance, and spontaneous order. The chapter then presents a stylized schema of social processes that embodies these key concepts and shows that the schema both accommodates distinctively Austrian theories and allows for a synthesis of the key methodological contributions of all the Austrian economists discussed earlier. (shrink)

Carl Menger’s Principles of Economics published in 1871 is usually regarded as the founding document of the Austrian School of economics. Many of the School’s prominent representatives, including Friedrich Wieser, Eugen Böhm-Bawerk, Ludwig Mises, Hans Mayer, Friedrich August Hayek, Fritz Machlup, Oskar Morgenstern, and Gottfried Haberler, as well as Israel Kirzner, Ludwig Lachmann, Murray Rothbard, and Don Lavoie, advanced and modified Menger’s research program in sometimes conflicting ways. Yet, some characteristics of the Austrian School remain (nearly) consensual (...) from its foundation through to contemporary neo-Austrian economists. In eight sections, we will briefly discuss some of the philosophical and methodological characteristics of Austrian economics: Austrian action theory and interpretative understanding, a relatively thoroughgoing subjectivism, methodological individualism, ontological individualism, apriorism, essentialism, an often overstated rejection of formal methods, and alertness to economic semantics. (shrink)

This Element presents a new framework for Austrian Capital Theory, starting from the notion that capital is value. Capital is the value attributed by the valuer at any moment in time to the combination of production-goods and labor available for production. Capital is the result obtained by calculating the current value of a business-unit or business-project that employs resources over time. It is the result of a entrepreneurial calculation process that relates the flow of consumptions goods to the value of (...) the productive resources that will produce those consumptions goods. The entrepreneur is a ubiquitous calculating presence. In a review of the development of Austrian Capital Theory, by Carl Manger, Eugen von Böhm-Bawerk, Ludwig von Mises, Friedrich Hayek, Ludwig Lachmann as well as recent contributions, the Element incorporates the seminal contributions into the new framework in order to provide a more accessible perspective on Austrian Capital Theory. (shrink)

Paul Davidson asserts that Post Keynesians could fare just as well without insights from their Austrian colleagues. He's wrong. Radical subjectivists within both schools of thought have something to gain through dialogue, as evidenced by the efforts of Kenneth Boulding, G.L.S. Shackle, and Ludwig Lachmann. Many Austrian and Post Keynesian economists share a common methodological principle of radical subjectivism, which emphasizes nonergo‐dic constructs and systems indeterminacy, and each school can gain from the insights of the other when asking (...) such questions as why capitalism generates recessions and depressions and why capitalism generates any degree of order at all. (shrink)

Carl Menger’s Principles of Economics, published in 1871, is usually regarded as the founding document of the Austrian School of economics. Many of the School’s prominent representatives, including Friedrich Wieser, Eugen Böhm-Bawerk, Ludwig Mises, Hans Mayer, Friedrich August Hayek, Fritz Machlup, Oskar Morgenstern, and Gottfried Haberler, as well as Israel Kirzner, Ludwig Lachmann, Murray Rothbard, Don Lavoie, and Peter Boettke, advanced and modified Menger’s research program in sometimes conflicting ways. Yet, some characteristics of the Austrian School remain (...) (nearly) consensual from its foundation through to contemporary neo-Austrian economists. In eight sections, we will briefly discuss some of the philosophical and methodological characteristics of Austrian economics: Austrian action theory and interpretative understanding, a relatively thoroughgoing subjectivism, methodological individualism, ontological individualism, apriorism, essentialism, an often overstated rejection of formal methods, and alertness to economic semantics. (shrink)

This book is an examination of the foundations and applications of the program of truth-theoretic semantics for natural languages introduced in 1967 by Donald Davidson in his classic paper “Truth and Meaning.” This is the second of two books on Donald Davidson’s central philosophical project. The first, Donald Davidson: Meaning, Truth, Language and Reality (Oxford: Oxford University Press, 2005), dealt with the basic framework of Davidson’s truth-theoretic approach to providing a meaning theory for a natural language, and then with his (...) development of his general project in the philosophy of language and theory of meaning by way of the analysis of the empirical confirmation of a meaning theory for a speaker, from the stance of the radial interpreter, that is, the interpreter who starts out without any detailed knowledge of the speakers’ meanings or attitudes. This book turns to the development of details of Davidson’s semantic program, specifically, the pursuit of the project of providing a compositional semantic theory for natural languages by making strategic use of an appropriately adapted Tarski-style axiomatic truth theory. Such a theory aims to provide a specification of the truth conditions of any felicitous utterance of a natural language sentence which serves to interpret it, and exhibits in the proof of the theorem that gives the truth conditions the compositional structure of the sentence and how its truth depends on its context of utterance. The book develops the basic framework, applies it to quantifiers, proper names, indexicals, simple and complex demonstratives, quotation, adjectives and adverbs, simple tenses of state and event verbs, temporal adverbs and quantifiers, tense in sentential complements and perfect tenses, opaque contexts, especially indirect discourse and attitude sentences, non-declarative sentences, semantic structure and logical form, and discusses the relation of the framework the metaphysics of truth. (shrink)

This paper gives an account of proxy agency in the context of collective action. It takes the case of a group announcing something by way of a spokesperson as an illustration. In proxy agency, it seems that one person or subgroup's doing something counts as or constitutes or is recognized as (tantamount to) another person or group's doing something. Proxy agency is pervasive in institutional action. It has been taken to be a straightforward counterexample to an appealing deflationary view of (...) collective action as a matter of all members of a group making a contribution to bringing about some event. I show that this is a mistake. I give a deflationary account of constitutive rules in terms of essentially collective action types. I then give an account of one form of constitutive agency in terms of constitutive rules. I next give an account of status functions—of which being a spokesperson is one—that also draws on the concept of a constitutive rule. I then show how these materials help us to see how proxy agency is an expression of the agency of all members of the group credited with doing something when the proxy acts. (shrink)

I address a criticism of the use of thought experiments in conceptual analysis advanced on the basis of the survey method of so-called experimental philosophy. The criticism holds that surveys show that intuitions are relative to cultures in a way that undermines the claim that intuition-based investigation yields any objective answer to philosophical questions. The crucial question is what intuitions are as philosophers have been interested in them. To answer this question we look at the role of intuitions in philosophical (...) inquiry. When we have done this, we can see that it is impossible for intuitions properly understood to be relative in the way that has been suggested as they are conceived of as expressions of competence in the concepts deployed in their contents. The remaining methodological issues, though not to be dismissed, present no in principle objection to the method of thought experiments. (shrink)

This paper clarifies Searle's account of we-intentions and then argues that it is subject to counterexamples, some of which are derived from examples Searle uses against other accounts. It then offers an alternative reductive account that is not subject to the counterexamples.

What is the ontology of collective action? I have in mind three connected questions. 1. Do the truth conditions of action sentences about groups require there to be group agents over and above individual agents? 2. Is there a difference, in this connection, between action sentences about informal groups that use plural noun phrases, such as ‘We pushed the car’ and ‘The women left the party early’, and action sentences about formal or institutional groups that use singular noun phrases, such (...) as ‘The United States declared war on Japan on December 8th, 1941’ and ‘The Supreme Court ruled that segregation is unconstitutional in 1954 in Brown vs. Board of Education’? 3. Under what conditions does it make sense to speak of a group doing something together, and what, if anything, is a collective action? In this paper, I argue that a) understanding action sentences about groups does not commit us to the existence of group agents per se, but only to the existence of individual agents; b) there is no difference in this regard between sentences which attribute actions to informal groups on the one hand and institutional groups on the other; c) collective action can be both intentional and unintentional; d) any random group of agents each of whom does something is also a group which does something together; e) while there is a sense in which groups per se perform no primitive collective actions, and therefore no actions at all, f) there is a sensible extension of talk of actions to groups, though it should be treated strictly speaking, like talk of group agents, as a façon de parler, for g) the only agents per se are individuals and the only actions are theirs. -/-. (shrink)

Ludwig deals with the relations between language, thought, and rationality, and, especially, the role and status of assumptions about rationality in interpreting another’s speech and assigning contents to her psychological attitudes—her beliefs, desires, intentions, and so on. The chapter is organized around three questions: What is the relation between rationality and thought? What is the relation between rationality and language? What is the relation between thought and language? Ludwig argues that some large degree of rationality is required for (...) thought and consequently that same degree of rationality at least is required for language since language requires thought. Thought, however, does not require language. In answering questions and, Ludwig gives particular attention to Davidson’s arguments for the Principle of Charity, according to which it is constitutive of speakers that they are largely rational and largely right about the world, and to Davidson’s arguments for the thesis that without the power of speech we lack the power of thought. (shrink)

Holism in interwar Germany provides an excellent example for social and political in- fluences on scientific developments. Deeply impressed by the ubiquitous invocation of a cultural crisis, biologists, physicians, and psychologists presented holistic accounts as an alternative to the “mechanistic worldview” of the nineteenth century. Although the ideological background of these accounts is often blatantly obvious, many holistic scientists did not content themselves with a general opposition to a mechanistic worldview but aimed at a rational foundation of their holistic projects. (...) This article will discuss the work of Kurt Goldstein, who is known for both his groundbreaking contributions to neuropsychology and his holistic philosophy of human nature. By focusing on Goldstein’s neurolinguistic research, I want to reconstruct the empirical foundations of his holistic program without ignoring its cultural background. In this sense, Goldstein’s work provides a case study for the formation of a scientific theory through the complex interplay between specific empirical evidences and the general cultural developments of the Weimar Republic. (shrink)

The aim of this article is to propose a methodological externalism that takes knowledge about science to be partly constituted by the environment. My starting point is the debate about extended cognition in contemporary philosophy and cognitive science. Externalists claim that human cognition extends beyond the brain and can be partly constituted by external devices. First, I show that most studies of public knowledge about science are based on an internalist framework that excludes the environment we usually utilize to make (...) sense of science and does not allow the possibility of extended knowledge. In a second step, I argue that science communication studies should adopt a methodological externalism and accept that knowledge about science can be partly realized by external information resources such as Wikipedia. (shrink)

Originally published in 1967. Ludwig Edelstein characterizes the idea of "progress" in Greek and Roman times. He analyzes the ancients' belief in "a tendency inherent in nature or in man to pass through a regular sequence of stages of development in past, present, and future, the latter stages being—with perhaps occasional retardations or minor regressions—superior to the earlier." Edelstein's contemporaries asserted that the Greeks and Romans were entirely ignorant of a belief in progress in this sense of the term. (...) In arguing against this dominant thesis, Edelstein draws from the conclusions of scholars of the nineteenth and early twentieth centuries and discusses ideas of Auguste Comte and Wilhelm Dilthey. (shrink)

This paper evaluates Putnam’s argument in the first chapter of Reason, Truth and History, for the claim that we can know that we are not brains in a vat (of a certain sort). A widespread response to Putnam’s argument has been that if it were successful not only the world but the meanings of our words (and consequently our thoughts) would be beyond the pale of knowledge, because a causal theory of reference is not compatible with our having knowledge of (...) the meanings of our words. I argue that this is not so. I argue also, however, that given how Putnam argues (here) for the causal theory of reference, he cannot after all escape this consequence. (shrink)

John Hick offers a summary account of William James's ‘The Will to Believe’ which is typical of the way that this essay has been understood by many in the one hundred years since it was first published. According to Hick, James argues -/- that the existence or nonexistence of God, of which there can be no conclusive evidence either way, is a matter of such momentous importance that anyone who so desires has the right to stake one's life upon the (...) God hypothesis. (shrink)

Bd. 1. Des Vernunftrechts erster Theil enthaltend die Grundrechte und das Einzelrecht.--Bd. 2. Des Vernunftrechts zweiter Theil enthaltend das öffentliche Recht und die allgemeine Rechtsgeschichte.

Immanuel Kants "Grundlegung" ist ohne Zweifel einer der bedeutendsten Texte der abendlandischen Moralphilosophie. Sie gilt mitunter allerdings auch als einer der "dunkelsten" Texte Kants - wenn nicht sogar der abendlandischen Philosophie uberhaupt. Der Kommentar macht deutlich, dass die vorgebliche Dunkelheit im Wesentlichen der Tatsache geschuldet ist, dass der Text seit langem im Schatten der falschen Annahme gelesen wird, Kant wolle eine Begrundung (oder Rechtfertigung) des Sittengesetzes liefern, um damit den moralischen Skeptizismus abzuwehren. Liest man ihn stattdessen unter der (auch historisch (...) angemesseneren) Perspektive, dass Kant mit dem kategorischen Imperativ 'nur' eine neue Formel fur das Prinzip der allgemein im Schwange gehenden Sittlichkeit 'angeben und rechtfertigen' will, um so den moralischen Eudaimonismus durch eine Moral der Autonomie zu ersetzen - dann zeigt sich, dass der Text nicht bloss ein philosophisches, sondern zugleich ein schriftstellerisches Meisterwerk ist. (shrink)

Martine Nida-Rümelin has argued recently for subject-body dualism on the basis of reflections on the possibility of survival in fission cases from the literature on personal identity. The argument focuses on the claim that there is a factual difference between the claims that one or the other of two equally good continuers of a person in a fission case is identical with her. I consider three interpretations of the notion of a factual difference that the argument employs, and I argue (...) that on each of them the argument either begs the question or is unsound. (shrink)