Skip to main content

Shaping Disciplinary Boundaries: Scientific Practice and Politics in the Methodenstreit Between the German Historical School and the Austrian School of Economics

  • Chapter
  • First Online:
Historical Perspectives on Erklären and Verstehen

Part of the book series: Archimedes ((ARIM,volume 21))

  • 854 Accesses

Abstract

In view of the great success enjoyed by the natural sciences by the end of the nineteenth century, scholars working in the social field felt the need to highlight the importance of the human sciences as piece and part of the broad scientific scene. Discussions purporting to the limits and status of the sciences devoted to the study of human behaviour, especially in relation to the logic of the natural sciences, led to the articulation of the conceptual pair Erklären/Verstehen as corresponding to the demarcation between Naturwissenschaften and Geisteswissenschaften. The differentiation between History and Society took central stage in the context of the debates about the scientific parameters shaping disciplinary boundaries and gave rise to the famous Methodenstreit opposing Gustav Schmoller the leader of the German Younger School of Economics to Carl Menger, the founding father of the Austrian School of Economics. The relevance of this episode can be measured by its impact not only on economics, but on the broader context of twentieth century social science, as the Methodenstreit turned on the dispute between Methodological Individualism and Holism. In this essay I tell the story of the divergences between German and Austrian scholars and suggest that the gap between the German Historical School and the Austrian School of Economics may be narrower than standard textbooks suggest.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    For a detailed description of how the idea of Volksgeist was a central tenet of the doctrines promoted by the German School of Jurisprudence and the German Historical School of Economics see the works of Hodgson (2001); Lindenfeld (1997); Scaff (1995); and Tribe (1988, 2002).

References

  • Alter M (1990) Carl Menger and the Origins of Austrian Economics. Westview Press, Boulder, CO

    Google Scholar 

  • Cubeddu R (1997) The critique of Max Weber in Mises’s Privatseminar, Cahiers d’épistémologie 9703

    Google Scholar 

  • Giocoli N (2003) Modeling Rational Agents. From Interwar Economics to Early Modern Game Theory. Edward Elgar, Cheltenham

    Google Scholar 

  • Hayek FA (1992) The fortunes of liberalism. Essays on Austrian economics and the ideal of freedom. In: Klein PG (ed.) The Collected Works of F. A. Hayek. The University of Chicago Press, Chicago, IL

    Google Scholar 

  • Hildebrand B (1848) Nationalökonomie der gegenwart und zukunft. Literarische Anstalt, Frankfurt am Main

    Google Scholar 

  • Hodgson GM (2001) How Economics Forgot History: The Problem of Historical Specificity in Social Science. Routledge, London

    Google Scholar 

  • Huerta de Soto J (1998) The ongoing Methodenstreit of the Austrian school. Journal des Economistes et des Etudes Humaines 8(1):75-113

    Google Scholar 

  • Hutchison TW (1973) Some themes from investigations into method. In: Hicks JR, Weber W (eds) Carl Menger and the Austrian School of Economics. Clarendon, Oxford, pp 15-37

    Google Scholar 

  • Kirzner I (1992) The Meaning of the Market Process. Routledge, London

    Google Scholar 

  • Knies (1883) Die politische ökonomie vom standpunkt der geschichtlichen Methode. Braunschweig C. A. Schwetschke und Sohn

    Google Scholar 

  • Koppl R (2002) Big Players and the Economic Theory of Expectations. Palgrave, New York

    Book  Google Scholar 

  • Koslowski P (1995) Economics as ethical economy in the tradition of the historical school. Introduction. In: Koslowski P (ed.) The Theory of Ethical Economy and the Historical School. Springer, Berlin, pp 1-11

    Google Scholar 

  • Lavoie D (1991) Hermeneutics and Economics. Routledge, London

    Google Scholar 

  • Lindenfeld DF (1997) The Practical Imagination. The German Sciences of State in the Nineteenth Century. University of Chicago Press, Chicago, IL

    Google Scholar 

  • Menger C ([1871] 1981) Principles of economics. Originally published as Grundsätze der volkswirtschaftslehre, Baum, Wien

    Google Scholar 

  • Menger C (1883) Untersuchungen über die methode der sozialwissenschaften und der politischen ökonomie insbesondere. Duncker & Humblot, Leipzig

    Google Scholar 

  • Mill JS (1848) The Principles of Political Economy. W. J. Ashley, London

    Google Scholar 

  • Mises L, von ([1969] 1984) The Historical Setting of the Austrian School of Economics. Arlington House, New York

    Google Scholar 

  • Mises L, von (1976) Epistemological Problems of Economics. New York University Press, New York

    Google Scholar 

  • Myrdal G (1954) The Political Element in the Development of Economic Theory. Harvard University Press, Cambridge, MA

    Google Scholar 

  • Pearson H (1999) Was there really a German historical school of economics? Hist Political Econ 31(3):547-562

    Article  Google Scholar 

  • Priddat B (1995) Intention and failure of W. Roscher’s historical method of economics. In: Koslowski P (ed.) The Theory of Ethical Economy and the Historical School. Springer, Berlin, pp 15-34

    Google Scholar 

  • Roscher W (1843) Grundriss zu Vorlesungen über die Staatswirtschaft nach geschichtlicher Methode. Dieterische Buchhandlung, Cotta Göttingen

    Google Scholar 

  • Roscher W (1858), Die grundlagen der national ökonomie. Ein hand- und lesebuch für geschäftsmänner und studierende. Cotta, Stuttgart

    Google Scholar 

  • Scaff LA (1995) Historicism in German social and economic thought. In: Koslowski P (ed.) The Theory of Ethical Economy and the Historical School. Springer, Berlin, pp 313-331

    Google Scholar 

  • Schmoller G, von ([1888] 1968) Zur literaturgeschichte der staats-und sozialwissenschaften. Burt Franklin, New York

    Google Scholar 

  • Schmoller G, von (1900-1904) Grundriss der allgemeinen volkswirtschaftslehre. 2 vols. Duncker & Humblot, Leipzig

    Google Scholar 

  • Schumpeter J ([1954] 1994) History of Economic Analysis. Oxford University Press, Oxford

    Google Scholar 

  • Shionoya Y (1995) An appraisal of Schmoller’s research program. In: Koslowski P (ed.) The Theory of Ethical Economy and the Historical School. Springer, Berlin, pp 57-78

    Google Scholar 

  • Streissler E (1990a) The influence of German economics on the work of Menger and Marshall. In: Caldwell BJ (ed.) Carl Menger and His Legacy in Economics. Duke University Press, Durham, pp 31-68

    Google Scholar 

  • Streissler E (1990b) Carl Menger on economic policy: the lectures to Crown Prince Rudolf. In: Caldwell BJ (ed.) Carl Menger and His Legacy in Economics. Duke University Press, Durham, pp 107-130

    Google Scholar 

  • Tribe K (1988) The Reformation of German Economic Discourse 1750-1840. Cambridge University Press, Cambridge

    Google Scholar 

  • Tribe K (2002) Historical schools of economics: German and English, Department of economics working paper series, Keele University, 2002-2002

    Google Scholar 

  • Vaughn KI (1994) Austrian Economics in America. The Migration of a Tradition. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Weber M (1903-1906) Roscher und Knies und die logischen Aufsätze. In: Gesammelte aufsätze zur wissenschaftslehre. J.C.B. Mohr, Tübingen

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Filomena de Sousa .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer Science+Business Media B.V.

About this chapter

Cite this chapter

de Sousa, F. (2010). Shaping Disciplinary Boundaries: Scientific Practice and Politics in the Methodenstreit Between the German Historical School and the Austrian School of Economics. In: Feest, U. (eds) Historical Perspectives on Erklären and Verstehen. Archimedes, vol 21. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-3540-0_12

Download citation

  • DOI: https://doi.org/10.1007/978-90-481-3540-0_12

  • Published:

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-3539-4

  • Online ISBN: 978-90-481-3540-0

  • eBook Packages: Humanities, Social Sciences and LawHistory (R0)

Publish with us

Policies and ethics