Menger's Untersuchungen and the methodological development of the Austrian School

In the chapter, an attempt is undertaken to demonstrate how Carl Menger differed in his position on the methodology of economics from his successors, particularly those Austrian School economists who follow into the tradition originated by Ludwig von Mises. It is pointed out that four such differences are of critical importance. Namely, in contrast to later Austrians, Menger (a) adopted a middle-of-the road standpoint in the dispute between methodological monism and dualism; (b) was not an apriorist with respect to the validation of economic laws; (c) recognized within the social sciences other theoretical fields apart from pure economic theory; (d) did not embrace universal methodological individualism, holding instead that the proper method of history be, in accordance with the historical school’s teachings, holism.