Methodology of the Austrian school of economics

One of the distinctive features of the Austrian school of economics is its emphasis on the methodological foundations of economics and social sciences in general. The two pillars of the approach of this school are methodological individualism and subjectivism. The purpose of this essay is not only to identify a few of the principles with which most Austrians are in agreement but also to emphasise significant diversity within their common viewpoint. An accent is put on praxeology introduced by Mises and Hayek's requirement of "empirical elements" concerning the processes of human learning. It is further emphasised that within this diversity has run and continues to run a common thread of emphasis on man as an intentional, creative being, an actor rather than a mere passive responder to given constraints and circumstances. The essay treats the development of the Austrian methodology mainly under the separate heads of its individual contributors.

Keywords: methodology, Austrian school, individualism, subjectivism, knowledge, human action, non-mathematical approach, ignorance, praxeology