Horwitz Austrian

In the Marginal Revolution, economics abandoned the cost-of-production theory of value used by the classical economists in favor of the modern, marginal theory of value.

Market prices allow unplanned capitalist economies to accomplish rational allocation by providing a common denominator to compare the many different inputs and outputs in an economy.

In a market, many different people with only a limited scope of knowledge make independent decisions and plans.

Israel Kirzner’s 1973 book Competition and Entrepreneurship marked the beginning of the revival of Austrian economics.

Menger’s explanation of the origin of money serves as an example of an important method for analyzing the emergence and function of social institutions.

Interest rates are prices that coordinate the behavior of savers and borrowers across time, reflecting people’s desires to buy things now versus later.

The Austrian conception of marginal utility differs from that of mainstream economics.