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Equilibrium versus Process: A Confrontation between Mainstream and Austrian Ontology

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  • Sandye Gloria-Palermo

    (GREDEG CNRS
    University of Nice-Sophia Antipolis, France)

Abstract

We confront mainstream and Austrian economics from a history of economic analysis point of view in order to identify the main reasons of their divergent interests on the concepts of, respectively, equilibrium and processes. The result of this confrontation attributes a decisive role to ontological considerations: mainstream central focus on equilibrium is the consequence of the adoption of specific mathematical tools. But the claim for a mathematical approach to economics is a doctrine that is independent from any study on the nature of the underlying economic system and real phenomena that are non-tractable are either reinterpreted in an amenable to reason form or are simply ignored. The choice of the tools determine the orthodox vision of the economic world as a closed system of interacting autonomous atoms. Austrians proceed exactly the other way round: ontological investigations are the starting point and as a consequence, they choose the relevant tools so to be coherent with their ontology where social reality is apprehended along an open processual view.

Suggested Citation

  • Sandye Gloria-Palermo, 2013. "Equilibrium versus Process: A Confrontation between Mainstream and Austrian Ontology," GREDEG Working Papers 2013-39, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2013-39
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    References listed on IDEAS

    as
    1. Gloria-Palermo, Sandye, 1999. "An Austrian Dilemma: Necessity and Impossibility of a Theory of Institutions," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 31-45.
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    7. Sandye Gloria-Palermo, 2010. "Introducing Formalism in Economics: The Growth Model of John von Neumann," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(2), pages 153-172, June.
    8. Oprea, Ryan D & Wagner, Richard E, 2003. "Institutions, Emergence, and Macro Theorizing: A Review Essay on Roger Garrison's Time and Money," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(1), pages 97-109, March.
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    More about this item

    Keywords

    Mainstream; mathematical formalism; Austrian school; social ontology; mathematical constructivism;
    All these keywords.

    JEL classification:

    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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