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Foundations of contemporary economics: Frank H. Knight on uncertainty, capital theory, and the beginnings of the Chicago school

Author

Listed:
  • Henrik Egbert
  • Teodor Sedlarski
  • Aleksandar B. Todorov

Abstract

Frank Knight (1885?1972) was an exceptional social scientist and a prolific writer of many reviews and comments on topics in economic theory, philosophy, and ethics. In economics he is best known for his work on uncertainty as a cause for entrepreneurial profit in competitive markets. This is only one of his many contributions that put the market and the price mechanism at center stage. In contrast to many other neoclassical writers, he vehemently criticized the market as a guiding principle to form a society since the market is unethical. Knight considered the economy as a social system and the economic approach as one among many others in social sciences. Knight is a founding father of the Chicago School of Economics. Several of his students became Nobelists.

Suggested Citation

  • Henrik Egbert & Teodor Sedlarski & Aleksandar B. Todorov, 2021. "Foundations of contemporary economics: Frank H. Knight on uncertainty, capital theory, and the beginnings of the Chicago school," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 74-90.
    • Handle: RePEc:bas:econth:y:2021:i:6:p:74-90
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    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Frank H. Knight, 1936. "The Quantity of Capital and the Rate of Interest: II," Journal of Political Economy, University of Chicago Press, vol. 44(5), pages 612-612.
    3. Ross B. Emmett (ed.), 2010. "The Elgar Companion to the Chicago School of Economics," Books, Edward Elgar Publishing, number 2591.
    4. Frank H. Knight, 1936. "The Quantity of Capital and the Rate of Interest: I," Journal of Political Economy, University of Chicago Press, vol. 44(4), pages 433-433.
    5. Frank H. Knight, 1925. "Economic Psychology and the Value Problem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 39(3), pages 372-409.
    6. Langlois, Richard N & Cosgel, Metin M, 1993. "Frank Knight on Risk, Uncertainty, and the Firm: A New Interpretation," Economic Inquiry, Western Economic Association International, vol. 31(3), pages 456-465, July.
    7. Frank H. Knight, 1923. "The Ethics of Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 37(4), pages 579-624.
    8. Patinkin, Don, 1973. "Frank Knight as Teacher," American Economic Review, American Economic Association, vol. 63(5), pages 787-810, December.
    9. Leigh, Arthur H, 1974. "Frank H. Knight as Economic Theorist," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 578-586, May/June.
    10. Avi Cohen, 2006. "The Kaldor/Knight controversy: Is capital a distinct and quantifiable factor of production?," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(1), pages 141-161.
    11. Frank H. Knight, 1935. "Professor Knight and the "Period of Production": Comment," Journal of Political Economy, University of Chicago Press, vol. 43(5), pages 625-625.
    12. Oliver E. Williamson (ed.), 1990. "Industrial Organization," Books, Edward Elgar Publishing, number 593.
    13. repec:cup:judgdm:v:5:y:2010:i:6:p:458-466 is not listed on IDEAS
    14. Knight, Frank H., 1923. "The Ethics of Competition," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 37, pages 579-624, August.
    15. F. H. Knight, 1921. "Cost of Production and Price over Long and Short Periods," Journal of Political Economy, University of Chicago Press, vol. 29(4), pages 304-304.
    16. John McKinney, 1975. "Frank H. Knight and Chicago Libertarianism," Journal of Economic Issues, Taylor & Francis Journals, vol. 9(4), pages 777-799, December.
    17. Frank H. Knight, 1931. "Professor Fisher's Interest Theory: A Case in Point," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 176-176.
    18. F. H. Knight, 1924. "Some Fallacies in the Interpretation of Social Cost," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 38(4), pages 582-606.
    19. Avi J. Cohen, 2003. "The Hayek/Knight Capital Controversy: The Irrelevance of Roundaboutness, or Purging Processes in Time?," History of Political Economy, Duke University Press, vol. 35(3), pages 469-490, Fall.
    20. F. A. v. Hayek, 1936. "The Mythology of Capital," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 50(2), pages 199-228.
    21. Frank H. Knight, 1941. "Anthropology and Economics," Journal of Political Economy, University of Chicago Press, vol. 49(2), pages 247-247.
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    More about this item

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition

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