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Heterogeneity and Time

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  • Malte Faber
  • Ralph Winkler

Abstract

. Although heterogeneity and time are central aspects of economic activity, it was predominantly the Austrian School of economics that emphasized these two aspects. In this paper we argue that the explicit consideration of heterogeneity and time is of increasing importance due to the increasing environmental and resource problems faced by humankind today. It is shown that neo‐Austrian capital theory, which revived Austrian ideas employing a formal approach in the 1970s, is not only well suited to address issues of structural change and of accompanying unemployment induced by technical progress but also can be employed for an encompassing ecological‐economic analysis demanded by ecological economics. However, complexity, uncertainty, and real ignorance limit the applicability of formal economic analysis. Therefore, we conclude that economic analysis has to be supplemented by considerations of political philosophy.

Suggested Citation

  • Malte Faber & Ralph Winkler, 2006. "Heterogeneity and Time," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 803-825, July.
    • Handle: RePEc:bla:ajecsc:v:65:y:2006:i:3:p:803-825
    DOI: 10.1111/j.1536-7150.2006.00475.x
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    4. Alessandro Attanasio & Maurizio Maravalle & Giulia Fioravanti, 2012. "Examining Granger causality between atmospheric parameters and radon," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 62(2), pages 723-731, June.
    5. Victor I. Espinosa & Miguel A. Alonso Neira & Jesús Huerta de Soto, 2021. "Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World," Sustainability, MDPI, vol. 13(23), pages 1-14, November.
    6. G. Iovine & I. Guagliardi & C. Bruno & R. Greco & A. Tallarico & G. Falcone & F. Lucà & G. Buttafuoco, 2018. "Soil-gas radon anomalies in three study areas of Central-Northern Calabria (Southern Italy)," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 91(1), pages 193-219, April.

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