Friedrich Hayek

The present essay aims to account for F.A. Hayek's oft-noted 'turn' away from technical economics to concerns of a more philosophical nature. In particular, the paper seeks an explanatory principle that reconciles various elements of both continuity and discontinuity in Hayek's intellectual development, especially with respect to the evolution of his arguments concerning economic fluctuations. The essay uncovers such an explanatory principle in Hayek's own methodology of sciences of complex phenomena. According to this principle, an inquirer who confronts phenomena too (...) complex for adequate explanation on the basis of current knowledge must move to a more general, albeit less testable, explanation. This is precisely what occurred in the evolution of Hayek's thought concerning trade cycles. The concluding section considers the implications of the argument for the extensive secondary literature on Hayek's 'transformation'. (shrink)

This is the first section of a five part essay dealing with economics from the perspective of Ernst Cassirer's cultural philosophy. In this first section, I try to demonstrate how the human concern with meaning is distorted in our commercial society into a purely economic sense of reality that displaces other forms of meaning. This distortion and displacement are at the heart of the social, cognitive and spiritual dysfunctions that currently plague us. The "Leverage of Meaning" will prepare the ground (...) for the formulation of the economic as a symbolic form in order to hopefully find some guidance in Cassirer's thought for restoring economy to its rightful cultural function. (shrink)

John Tomasi's new book, Free Market Fairness, has been well-received as "one of the very best philosophical treatments of libertarian thought, ever" and as a "long and friendly conversation between Friedrich Hayek and John Rawls—a conversation which, astonishingly, reaches agreement". The book does present an authoritative state-of-the-debate across the spectrum from right-libertarianism on the one side to high liberalism on the other side. My point is not to question where Tomasi comes down with his own version of "market democracy" as (...) a remix of Hayek and Rawls. My point is to use his sympathetic restatements of views across the liberal spectrum to show the basic misframings and common misunderstandings that cut across the liberal-libertarian viewpoints surveyed in the book. As usual, the heart of the debate is not in the answers to carefully framed questions, but in the framing itself. (shrink)

Fascinating and thought-provoking, this book shows how the methodology of Austrian economics can be justified and strengthened by grounding it in the philosophy of Wittgenstein. Frege and Wittgenstein argued that whatever counts as thought must embody logical principles. Their arguments also support the conclusion that whatever constitutes action must embody economic principles. In this incisive text, the author shows that this confirms the claims of Austrian economists such as Mises and Hayek that the laws of economics are _a priori_ rather (...) than empirical. (shrink)

Encyclopedia entry: http://www.sagepub.com/books/Book234813#tabview=title.

Entender algo sobre un mundo que se nos presenta de modo desordenado e incompleto constituye buena parte de la tarea de la filosofía y de la ciencia. La racionalidad, los modelos, y el mundo social introducen preocupaciones propias de la filosofía de la ciencia en general y de la epistemología de la economía en particular. Los aportes de Popper, Lawson, Mäki, Hayek y Cartwright se expresan en estos trazos como intentos abiertos para alcanzar a comprender nuestro mundo.

How should we design our economic systems? Should we tax the rich at a higher rate than the poor? Should we have a minimum wage? Should the state provide healthcare for all? These and many related questions are the subject of distributive justice, and different theories of distributive justice provide different ways to think about and answer such questions. This book provides a thorough introduction to the main theories of distributive justice and reveals the underlying sources of our disagreements about (...) economic policy. It argues that the universe of theories of distributive justice is surprisingly simple, yet complicated. It is simple in that the main theories of distributive justice are just four in number, and in that these theories each offer a distinct, well-defined theoretical approach to distributive justice; yet it is complicated in that the main theories disagree at several distinct, fundamental levels, and in that it is possible to spin innumerable new theories from the elements of the four main theories. (shrink)

In the debate on realism of models in economics, the Austrian School and Hayekin particular, seem to have, in a certain way, remained outside. Assuming neoclassical models asunrealistic, the theory of the market as a process looks like a more realistic proposal. However, oneof the fundamental issue s in Hayek’s dissent is not so much the unrealism of the assumptions, but that the market equilibrium theory was not correctly raised, especially with regards to the perfectknowledge assumption. Despite this, in this (...) setting and in line with a previous paper (Zanotti & Borella, 2015), we will argue that Hayek’s spontaneous order may be understood as the Austrian School’s “model”, assuming Mäki’s MISS version of models (Models as Isolations and Surrogate Systems) and emphasizing the place of the ontological foundation of Hayek’s proposal when assessing his model. (shrink)

Si bien no es habitual pensar a Hayek en términos de realismo, sino comprenderlo como neokantiano, presentaremos la interpretación realista fenomenológica de Hayek que ofrece Zanotti a lo largo de su obra. Señalaremos los aspectos centrales de la epistemología de Hayek y la lectura realista fenomenológica como una posición superadora tanto del positivismo como de una hermenéutica relativista.

Friedrich Hayek’s defense of neoliberal free market capitalism hinges on the distinction between economies and catallaxies. The former are orders instituted via planning, whereas the latter are spontaneous competitive orders resulting from human action without human design. I argue that this distinction is based on an incomplete semantic history of “economy.” By looking at the meaning of “oikonomia” in medieval providential theology as explained by Giorgio Agamben and Joseph Vogl, I argue how Hayek’s science of catallactics is itself a secularization (...) of providential theology. This exposes Hayek to three criticisms: he unjustifiably neglects the possibility of tendencies toward spontaneous disorder in free markets, he condemns the “losers” of neoliberal competition to being providential waste on the road to general prosperity, and he imposes on people the duty to consent to a neoliberal order that hinders them from cultivating their inoperativity. (shrink)

Karl Polanyi's double movement is a dialectical process characterized by a continuous tension between a movement towards social marketization and a movement towards social protectionism. Notably, Polanyi condemns the former movement while defending the latter. Without using the term " double movement " , F.A Hayek's theory of social evolution acknowledges the same phenomenon but reaches different normative conclusions. While for Polanyi the marketization of society is a utopia with dystopian consequences, Hayek's evolutionary explanation of this dialectical process asserts that (...) there is no alternative to a market oriented society. Both authors defend that their favoured movement is the one that truly supports the continuity of life. This article compares the authors' normative readings of the double movement and concludes that, from an evolutionary perspective, Polanyi's conclusion possesses a robustness that Hayek's postulate lacks. (shrink)

In this paper we will analyze Lawson’s criticism of Hayek for not having transcended positivism. We will distinguish two levels in the criticism: methodological and ontological. So far as methodological criticism is concerned, we consider that Lawson’s positivist interpretation of Hayek regarding the method in economics is not the only possible, and we will try to develop another one. With respect to ontological criticism, we will state that though it is possible to understand Hayek as an ontological positivist, since he (...) assumes an ontological individualism, this fact would not necessarily lead to positivism -question to which Lawson seems to bring Hayek closer after 1955- but a moderate ontological individualism could be assigned to Hayek founded on a realistic interpretation of Husserl’s phenomenology. (shrink)

En este artículo se ofrece una presentación de los aspectos centrales de la concepción del hombre de Hayek y una breve refl exión sobre ella. Primero, se expone su concepción de lo que es el hombre: un ser individualista, cuya evolución histórica conduce a la "sociedad extendida", y creador de normas y tradiciones. A continuación, se caracterizan sus principales dimensiones: la ética es heterónoma y coincide con las reglas sociales; su razón es limitada; la libertad es individual, negativa, y se (...) limita a la libertad económica y, fi nalmente, sostiene que los hombres son naturalmente desiguales. We explain the main aspects of Hayek's conception of man and its intellectual background. The Austrian thinker developed this conception on two levels. On the one hand, he proffers an idea of what man is, namely, an individualist, who evolves from "tribal society" to "extended society", and a creator of norms and traditions. On the other had, he tells how man is, he spells out his chief characters: man's ethics is heteronomous and immanent to the reproduction of society; man's intelligence is limited and his central value is freedom, economically understood. Finally, Hayek maintains that me are naturally unequal. (shrink)

The article investigates the connections between Hayek’s cognitive psychology and his methodological individualism. It argues that Hayek’s theory of the sensory order, which is his less-studied scientific contribution, supports an original but largely unknown argument in favour of the Verstehen approach of methodological individualism. Hayek merges a theory of the temporality of knowledge as understood by phenomenological hermeneutics, and notably by Gadamer, with a proto-connectionist theory of mind to develop a perspective that anticipates by decades Varela’s and Maturana’s neuro-phenomenology. The (...) article shows that Hayek uses this perspective to criticize the deterministic paradigms of action that consider action to be a mechanical effect of a pre-given reality and challenge the Verstehen approach, which is defended both by methodological individualism and phenomenological hermeneutics. (shrink)

Friedrich Hayek is one of the most influential political philosophers of the twentieth century. A 1974 Nobel Prize winner for Economics, Hayek argues for the superiority of the free society over totalitarian, planned societies. Although Hayek arguably hit his target, he missed the bull’s-eye, because he failed to explain government and its prudential limits with reference to a complete view of human nature. This is partly because he failed to recognize that Christianity is the essence of Western civilization.

Name der Zeitschrift: Zeitschrift für kritische Sozialtheorie und Philosophie Jahrgang: 2 Heft: 1 Seiten: 182-199.

The paper aims to establish that Terence Hutchison’s argument in The Politics and Philosophy of Economics (1981) to the effect that the young F.A. Hayek maintained a methodological position markedly similar to that of Ludwig von Mises fails to establish the relevant conclusion. The first problem with Hutchison’s argument is that it is not clear exactly what conclusion he meant to establish with regard to the methodological views of the two paragons of 20th century Austrian economics. Mises (in)famously maintained a (...) rather extreme methodological apriorism. However, Hutchison’s argument does not support the claim that Hayek was ever an apriorist of the Misesian variety. The concept of a priori knowledge that emerges from Hayek’s epistemology – specifically the epistemology implied by Hayek’s work in theoretical psychology – is the direct opposite of Mises’ treatment of a priori knowledge. Simply stated, Hayek conceived of a priori knowledge as fallible and relative, while Mises considered a priori knowledge to be infallible and absolute. Thus, it cannot be maintained – if, indeed, Hutchison meant to establish – that Hayek was a Misesian apriorist during the years in question. What’s more, the paper shows that Hutchison’s argument does not support a weaker interpretation of the relevant conclusion. There are alternative interpretations of the evidence adduced by Hutchison that are both more charitable and more in line with Hayek’s epistemology that undermine Hutchison’s conclusion. (shrink)

From the early-1950s on, F.A. Hayek was concerned with the development of a methodology of sciences that study systems of complex phenomena. Hayek argued that the knowledge that can be acquired about such systems is, in virtue of their complexity (and the comparatively narrow boundaries of human cognitive faculties), relatively limited. The paper aims to elucidate the implications of Hayek’s methodology with respect to the specific dimensions along which the scientist’s knowledge of some complex phenomena may be limited. Hayek’s fallibilism (...) was an essential (if not always explicit) aspect of his arguments against the defenders of both socialism ([1935] 1948, [1940] 1948) and countercyclical monetary policy ([1975] 1978); yet, despite the fact that his conceptions of both complex phenomena and the methodology appropriate to their investigation imply that ignorance might beset the scientist in multiple respects, he never explicated all of these consequences. The specificity of a scientific prediction depends on the extent of the scientist’s knowledge concerning the phenomena under investigation. The paper offers an account of the considerations that determine the extent to which a theory’s implications prohibit the occurrence of particular events in the relevant domain. This theory of “predictive degree” both expresses and – as the phenomena of scientific prediction are themselves complex in Hayek’s sense – exemplifies the intuition that the specificity of a scientific prediction depends on the relevant knowledge available. (shrink)

The present essay addresses the epistemic difficulties involved in achieving consensus with respect to the Hayek–Keynes debate. It is argued that the empirical implications of the relevant theories are such that, regardless of what is observed, both theories can be interpreted as true, or at least, as not falsified. The essay explicates the respects in which the empirical evidence underdetermines the choice between the relevant theories. In particular, it is argued both that there are convenient responses that protect each theory (...) from what appears to be threatening evidence and that, for particular kinds of evidence, the two theories are empirically equivalent. Larry Laudan's suggestion that ampliative methodological criteria can resolve an underdetermined choice between multiple scientific theories is considered and rejected as a possible means to rational consensus. (shrink)

This paper examines two paths by which F. A. Hayek’s work has influenced the cognitive theory of institutions: cognition and cultural evolution. It argues that there is a relationship between the sensory order and the social order. The explanation of social order begins with the human mind. This is illustrated with ideas relating to understanding culture from a cognitive viewpoint. Human cognition makes cultural evolution an endogenous process. The paper draws on ideas of co-evolution of individuals’ mental models and their (...) actions. Mental models can be modified by feedback from altered perceived reality as a consequence of peoples’ altered actions. A key to understanding cultural evolution is an understanding of how individuals modify their mental models. (shrink)

Assesses John Tomasi's Free Market Fairness.

Hayek developed two contradictory epistemologies. The epistemology for which he is famous attributed dispersed knowledge to economic actors and credited the price system for aggregating and communicating this knowledge. The other epistemology attributed to human and non-human organisms alike the error-prone interpretation of stimuli, which could never truly be said to be “knowledge.” Several of the paradoxes of Hayek's economic and political thought that are explored in this symposium can be explained by the triumph of the first epistemology over the (...) second, including his historical interpretation of socialism as a planning mentality; his tendentious definitions of “liberty” and “justice”; and his opposition to economic redistribution even as he endorsed all manner of economic and social regulations. (shrink)

At the end of World War II, F. A. Hayek denounced the then-popular idea of central planning by arguing that, if pursued to its logical conclusion, it would entail totalitarianism. But there were at least two problems. First, judging by his example of Nazi Germany, state control over the economy appears to be a consequence, not a cause, of the monopolization of political power. Second, he conflated socialism and mere interference in the market with central planning. Therefore, history did not (...) so much falsify Hayek's prediction as bypass it: Once the vogue for central planning faded in the West, Hayek's book became irrelevant—except, ironically, in Germany. There, it was read as a manifesto for “good planning” through the rule of law. Alongside other “neoliberal” writers, Hayek had a profound (if little acknowledged) influence on the shape of the emerging Federal Republic and, through it, on the whole European institutional framework. (shrink)

There is an odd proximity between Hayek, hero of the libertarian right, and Rawls, theorist of social justice, because, at the level of principle, Hayek was in some important respects a Rawlsian. Although Hayek said that the idea of social justice was nonsense, he argued against only a particular principle of social justice, one that Rawls too rejected, namely distribution according to individual merit. Any attempt to make reward and merit coincide, Hayek argued, would undermine the market's price system, leaving (...) us all poorer and less free. Like Rawls, Hayek held that we should assess social institutions from behind a veil of ignorance, and he thought that doing so pushed us toward egalitarianism. Most of the distance between Hayek and Rawls at the level of policy stems from Hayek's optimism about the operation of markets, his equivocation about the meaning of central concepts, and his appeal to under-argued slippery slopes. Hayek wavered, however, between claiming that private property and markets benefit everyone, compared to the feasible alternatives, and the principle that they maximize the opportunities of a randomly selected member of society, i.e., aggregate opportunity. Contemporary Hayekians claim that capitalism raises the position of the worst off in the long run, in future generations, whereas Rawlsians insist that inequalities between social positions should benefit the worst off now. (shrink)

For multiple reasons, deliberating groups often converge on falsehood rather than truth. Individual errors may be amplified rather than cured. Group members may fall victim to a bad cascade, either informational or reputational. Deliberators may emphasize shared information at the expense of uniquely held information. Finally, group polarization may lead even rational people to unjustified extremism. By contrast, prediction markets often produce accurate results, because they create strong incentives for revelation of privately held knowledge and succeed in aggregating widely dispersed (...) information. The success of prediction markets offers a set of lessons for increasing the likelihood that groups can obtain the information that their members have. (shrink)

Focusing on the work of Friedrich von Hayek and Vernon Smith, we discuss some conceptual links between Austrian economics and recent work in behavioral game theory and experimental economics. After a brief survey of the main methodological aspects of Austrian and experimental economics, we suggest that common views on subjectivism, individualism, and the role of qualitative explanations and predictions in social science may favour a fruitful interaction between these two research programs.

Ayn Rand and Friedrich Hayek were notable 20th century advocates of libertarianism, and both of them based their political views, in part, on theories in epistemology. This paper discusses the radical difference in their views on a core epistemological issue, the nature of abstractions. Rand held that we form abstractions from the observation of particular, concrete things. Hayek held the opposite view that abstractions are primary; some are innate, some acquired from our cultural environment, but neither can be independently supported (...) by observation of concretes. Kelley will show why Hayek’s view is both false and inconsistent with a fully individualist moral and political theory. (shrink)

Parmi nos « contemporains » majeurs , Friedrich August von Hayek a formulé une « vision du monde » qui marque notre temps et qui lui vaut l’admiration ou la détestation résumées dans un terme utilisé souvent mal à propos : « ultralibéralisme ». Avec la « crise du..

This paper conceives of Hayek’s overall project as presenting a theory of sociocognition, explication of which has a two-fold purpose: (1) to locate Hayek within the non-Cartesian tradition of cognitive science, and (2) to show how Hayek’s philosophical psychology infuses his social theory.

In this article I summarize Friedrich Hayek’s cultural group selection theory and describe the evidence gathered by current cultural group selection theorists within the behavioral and social sciences supporting Hayek’s main assertions. I conclude with a few comments on Hayek and libertarianism.

Volume 13 in the Major Conservative and Libertarian thinkers series focuses on F.A. Hayek, The influential member of the Austrian School of Economics.

Cet article reconstruit la théorie hayékienne de l’évolution culturelle tout en en montrant certaines limites et implications. Ce travail consiste ainsi en un effort de reconstruction et de synthèse. Pour ce faire, nous situerons en premier lieu la pensée hayékienne sur la toile de fond d’une réfexion sur les ordres spontanés et sur l’évolutionnisme. Nous effectuerons ensuite une distinction fondamentale entre règles de conduite et ordre d’actions du groupe. Nous analyserons fnalement les règles de conduite des individus en ayant recours (...) à deux aspects principaux, l’aspect psychologique, concernant la manière dont sont produites et transmises les règles de conduite des individus, et l’aspect épistémologique, traitant de la valeur que nous pouvons accorder à ces règles. (shrink)

Friedrich von Hayek is mostly known as a staunch critic of naturalist fallacy. It is claimed in the article that having been heavily influenced by Epicurus, he commited an identical error that he himself criticized. This opinion is based on Hayek’s application of Ernst Mach mind-body dualism criticism, Epicurean theory of irrational ethics and falsificationistic theory of knowledge related with atomistic view of the universe.

ArgumentFriedrich August von Hayek is mainly known for his defense of free-market economics and liberalism. His views on science – more specifically on the methodological differences between the physical sciences on the one hand, and evolutionary biology and the social sciences on the other – are less well known. Yet in order to understand, and properly evaluate Hayek's political position, we must look at the theory of scientific method that underpins it. Hayek believed that a basic misunderstanding of the discipline (...) of economics and the complex phenomena with which it deals produced misconceptions concerning its method and goals, which led in turn to the adoption of dangerous policies. The objective of this article is to trace the development of Hayek's views on the nature of economics as a scientific discipline and to examine his conclusions concerning the scope of economic prediction. In doing so, I will first show that Hayek's interest in the natural sciences, as well as his interest in epistemology, were central to his thought, dating back to his formative years. I will then emphasize the important place of historical analysis in Hayek's reflections on methodology and examine the reasons for his strong criticism of positivism and socialism. Finally, in the third and fourth sections that constitute the bulk of this article, I will show how Hayek's understanding of the data and goal of the social sciences, culminated in an analogy that sought to establish economics and evolutionary biology as exemplary complex sciences. I will challenge Hayek's interpretation of this analogy through a comparison with Darwin's views inThe Origin of Species, and thus open a door to re-evaluating the theoretical foundations of Hayek's political claims. (shrink)

logical failure or contradiction by a fact. Intuition alone can decide between two competing theories agreeing with the facts. (ibid. ...