Abstract
Austrian capital theory provides a framework that is quite different from contemporary methods. In the Austrian view, time and timing are the crucial aspects of production and intertemporal allocation of resources (see FABER [1979]). This paper was motivated to clarify the questions: (1) How does the neo-Austrian theory contribute to the economic modelling of the open-endedness of the future? (2) What are the differences between the neo-Austrian and the neoclassical approach, if the future is indefinite? In Section 2 we argue, why an infinite horizon should be used for economic analyses. In Section 3 we describe the concept of efficiency prices in the finite horizon case. In Section 4 we discuss how to idealize this concept, if the horizon is indefinite. In Section 5 we give answers to the two questions above. By this way we provid an overview over the neo-Austrian annroach to the open-endedness of the future and its relationship to neoclassical concepts.
The author is deeply indebted to M.FABER and F.-J.WODOPIA for helful suggestions, comments and stimulating discussions. Thanks also go to F.BREYER and G.WAGENHALS.
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Stephan, G. (1986). A Neo-Austrian Approach to the Open-Endedness of the Future: An Overview. In: Faber, M. (eds) Studies in Austrian Capital Theory, Investment and Time. Lecture Notes in Economics and Mathematical Systems, vol 277. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-51701-3_8
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DOI: https://doi.org/10.1007/978-3-642-51701-3_8
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