QJAE 1-12 EPUB: https://drive.google.com/file/d/0B4ZhDNbD1hfBcldITTNzRUtEZHM/edit?usp=sharing
Fix Notes:
QJAE 1.1:
Page 10: Footnote 28: preceding
On the proceeding two sentences, see the Leffingwell-Glass correspondence, Box 283 in the Carter Glass Papers at the University of Virginia.
Page 17: "Rothbard"
Rothbard, M.N. 1980. "The New Deal and the Monetary System." In The Great Depression and New Deal Monetary Policy, G. Garrett and M. Rothboard, eds. San Francisco: Cato Institute. Pp. 79-124.
Page 18: References: Houghton
Schlesinger, A.M.J. 1958. The Coming of the New Deal. Boston: Hughton Mifflin.
Page 24: par. 2: possibility
There is no third possiblity.
Page 32: bottom par.: occurring
A tax-yielding protection agency is a contradiction in terms—an invasive protector—and must be forbidden, irrespective of any benefits occuring to state depositors, state borrowers, and state owners.
Page 36: Footnote 16: An Erratum was given in QJAE 1.2.6, I implemented the change.
Page 38: Footnote 16: Garrison
As Roger Garrision, another fractional reserve free banker, has put it, [...]
Page 40: Footnote 18: accommodation
It is not sufficient for banks to accommodate some abstract higher money demand by more money; rather, but the accomodation would have to occur precisely with the correct people and locations. If this is not the case, one can hardly speak of an accomodation but of an additional distortion.
Page 41: Footnote 21, par. 2: double word
No one can be compelled to own the additional money corresponding to the new bank-credit, unless he deliberately prefers to hold more more money rather than some other form of wealth" (ibid, p. 83)
Page 57: bottom par.: Snowdon
The Modern Guide to Macroeconomics (Snowden, Vane, and Wynarczyk 1995) gives play to the multiplicity of schools of thought by presenting macroeconomics in a school-per-chapter format.
Page 85: par. 3: anarcho-capitalism
In Libertarians and Liberalism, Gerd Habermann critically examines the premises and tenets of Rothbardian anarcho-captalism.
QJAE 1.2:
Page 3: caption for table: competitive
competitve price
Page 4: caption for table: competitive
competitve price
Page 7: caption for table: competitive
competitve price
Page 37: Footnote 8: virtually
Second, socializing the returns to assets but not asset "ownership" is a distinction virurally without a difference.
Page 45: par. 2: characterize
If it is possible to contrast the ideas of various economists at all, it is certainly fair to charaterize them according to their ultimate conclusions.
Page 79: bottom par.: Missing a closing quote. Also, "economic geography" should be surrounded by single quotes.
In what has now become a typical disclaimer, prominent mainstream economists have recently written: "The second set [of theories of international trade patterns] interacts increasing returns with transport costs to create what Krugman ... has clubbed models of "economic geography" (Davis and Weinstein 1996).
Page 80: Footnote 20: Although
Altough a comment is probably worth making here.
Page 85: Author Biography: University
PAUL CWIK is a PhD candidate in economics at Auburn Univesity.
QJAE 1.3:
Page 5: par. 3: Capital 'I' should start the sentence
in Walrasian general-equilibrium, rational agents act upon full and certain information to equate marginal gains and losses.
Page 6: par. 2: superscript needs to be 6, not "b"
The socialist calculation debateb of the 1930s had sharpened Hayek's criticisms of Walrasian general-equilibrium (for the neglect of informational aspects of competitive markets), but his own reformulations were open to (misinterpretation to the extent that they can be represented as developments within either the New Classical or the Austrian paradigms,7 or as a hybrid.
Page 6: par. 2: [1945]
Their details—which incorporate the allocation of economic resources and the fullest use of existing knowledge—are presented across four publications: “Economics and Knowledge (Hayek [1937] 1949), “The Use of Knowledge in Society” (Hayek [19451 1949), “The Meaning of competition” (Hayek [1946] 1949), and “Competition as a Discovery Procedure” (Hayek [1968] 1978).
Page 8: par. 1: Should be a quotation mark
[...] facilitate the most effective use of endogenous information; i.e., “to provide inducements which will make individuals do the desirable things without anyone having to tell them what to doN (ibid., p. 88).
Page 12-14: References, a lot of the books/journals were missing a bunch of italics.
Page 64: Footnote 4: than
According to Philippe Nataf, statistics of the Massachusetts House and Senate show that bank credit expansion under free competition has been kept below 1 percent a year for more that five decades.
QJAE 1.4:
NOTE: Page 94 is missing in QJAE 1.4.6.
Page 17: Footnote 28: competition
Therefore, competiton between fractional-reserve banks "would ... not hinder a slow credit expansion" (Mises 1998, p. 443).
Page 56: par. 1: pharmaceutical
The fact that the pharmeceutical industry is by far the most heavily regulated of all makes the importance of patents in it understandable (Hippel 1988; Winter 1989; Svetos 1996).
Page 60: par. 2: research
In a similar type of reserarch on Silicon Valley's semiconductor industry, Rogers (1982, p. 118) has found that most of his respondents considered that "much technological information is not patented by private firms."
Page 65: References: No closing quote
Nataf. Philippe. 1993. "New England's Depression-Proof Banking System. In Perspectives on the History of Economic Thought. Vol. 9. Robert F. Hébert, ed. London: Edward Elgar.
Page 72: Footnote on this page should be numbered 27, not 7.
Page 73: References: Quarterly
Jaffe, Adam B., Manuel Trajtenberg, and Rebecca Henderson. 1993. "Geographical Localization of Knowledge Spillovers as Evidenced by Patent Citations." Quaterly Journal of Economics 108:577-98.
QJAE 2.1:
NOTE: italics lean to the left instead or right.
Page 14: par. 2: double word
The combined effect of these two opposite drifts makes up the rise of vPC during the the downswing.
Page 18: References: Missing opening quote
Lianos, Theodore P., and Vassilis Droucopoulos. 1993. Convergence and Hierarchy of Industrial Profit Rates: The Case of Greek Manufacturing.” Review of Radical Political Economics 25, no. 2 (June): 67–80.
Page 32: par. 4: relevant
Hence, the alternative that Gustave de Molinari stressed in 1849 is still revelent today, and the challenge is the same: either economists must approach their discipline as a coherent, integrated whole, so that such basic concepts as what constitutes a good may be readily understood, or it will grow increasingly fragmented, broken into pieces of unintegrated analysis.
Page 63: References: Institute
Holcombe, Randall G., ed. 1999. Fifteen Great Austrian Economists. Auburn, Ala.: Ludwig von Mises Insitute. Forthcoming 1999.
Page 76: Heading "Reference" should say "References".
Page 82: par. 1: Giuliani
The SEC was spurred on by Congress, flanked on one side by U.S. Attorney Rudolph Guiliani and on the other by sundry state legislators beholden to corporations in their district.
Page 86: par. 1: anomaly
Regulation causes this anomoly because it prevents companies from acquiring large blocks of stock in companies, without registering their intentions with the government and alerting the market to their intentions.
Page 92: Missing a heading for "References"
QJAE 2.2:
NOTE: italics lean to the left instead or right.
Page 52: par. 2: double word
[...] —was disastrous for Germany and instructive for us. In this article, I intend to make two general points about this episode of centralized planning: one about about the genesis, or rather genealogy, of the program, and one about its effects.
Page 54: par. 1: Moellendorff
Even before the war, Moellendorf hoped to control unruly individuals and prevent inefficient competition by erecting an autarkic state in which vertical and horizontal integration of industry, and its control by government overcame the selfish inefficiencies of individual choice.
Page 59: par. 1: philosopher
The American collectivist philospher John Dewey, a contemporary of the Hindenburg Program elitists, plumped enthusiastically for American entry to the war.
Page 60: par. 1: administrators
Well, yes, but based on community decisions made by technocratic adminstrators such as ... himself.
Page 69: par. 3: individual's
This pool comprises of various goods and services that are required to accommodate individuals's needs.
Page 73: par. 2: entrepreneurial
Kirzner's analysis starts in an environment where entrenrepeurial opportunities already exist, and he discusses the entrenrepeurial role of discovering these opportunities.
Page 82: par. 4: Moreover
Morever, "The myth nonetheless persists that our system is the embodiment of liberty.
Page 94: par. 9: being
No claim to discern an inner necessity is bring made.
QJAE 2.3:
NOTE: italics lean to the left instead or right.
NOTE: QJAE 2.3.4 actually had an Armentano attached at the end. QJAE 2.3.5 is the Armenatno article, BUT, it has a newer typography from the rest of the QJAE 2.3 articles.
Page 18: Footnote 8: Company
[...] Chase National Bank, Guaranty Trust Compay, Morton Trust Company, Mutual Life Insurance Company, AT&T, Consolidated Gas Company of New York, [...]
Page 66: par. 2: moreover (?)
Bethell, moveover, correctly identifies the various aspects of private property as "the rights to use the thing and to exclude others from doing so, to alter its physical configuration, to enjoy its fruits, including its income, and, not least, to transfer the title of ownership to another" (p. 19).
Page 91: Timothy Terrell is AFTER the References, it should come BEFORE (to match the rest of the articles).
QJAE 2.4:
NOTE: italics lean to the left instead or right.
Page 19: References: Hans-Hermann
Hoppe, Hans-Herman, and Joseph T. Salerno. 1999.
Page 23: par. 2: cream
Using Caplan’s exact words, his preference for ice ream can (at least sometimes) be demonstrated: at least on those occasions when we catch him in the instantaneous act of making a purchase of this foodstuff.
Page 27: References: Missing closing quote.
———. 1994. “Total Repeal of Anti-trust Legislation: A Critique of Bork, Brozen and Posner. Review of Austrian Economics 8 (1).
Page 28: Footnote 15: Lachmann
For Lachman (1976), Lavoie (1985), Ebeling (1985) and others who have mistakenly been characterized as Austrians (see Vaughn 1994), equilibrium drops out of consideration entirely, and their analysis thus reverts to that of the German Historical School.
Page 28-30: Attached to the very end of qjae2_4_2.pdf is an ERRATA. I substituted that into the article itself.
Page 29: par. 0: milieu
But, give the man a break! He had to communicate in a neoclassical mileau.
Page 29: bottom par.: intervention
For example, Lee (1999) once again shows the Public Choice School as dedicated to supporting socialism and state invervention [...]
Page 46: par. 4: legitimization
Even granting the socialists, that their main interest was the question of what constitutes equity and justice in society, the French Revolution elaborated not only on the principle of justice but also on that of democracy, that is the legitimiziation of the tyranny of the majority.
Page 49: Footnote 1: constitutional
Various works with at least a semi-libertarian approach to legal and consitutional theory include DeRosa (1996), [...]
QJAE 3.1:
NOTE: italics lean to the left instead or right.
Page 14: Footnote 25: Inner quotes should be single quotes
In their struggle to preserve the possibility of objective content, these authors go on to resort to the following ridiculous assumption: “that agents have identical expectations and in particular that they have “point expectations”: which is to say that they believe that there is no uncertainty about future prices.”
Page 42: References: Missing closing quote
Vedder, Richard, and Lowell Gallaway. 1992. “Racial Differences in Unemployment in the U.S., 1890–1990. Journal of Economic History 52 (September): 696–702.
Page 54: References: Missing closing quote
Selgin, George A., and Lawrence H. White. 1996. “In Defense of Fiduciary Media—or, We Are Not Devo(lutionists), We Are Misesians! Review of Austrian Economics 9 (2): 83–107.
Page 56: par. 3: loaf
Prior to the fall in the wage from one to half a load of bread, our individual had chosen to consume eight loaves of bread and sixteen hours of leisure.
Page 73: Footnote 28: Extra comma by accident
Medema (1994a, 1994b, 1994c, 1994d, 1995a, 1995b, 1995c, 1996a, 1996b, 1996c, 1996d, 1997a, 1997b, 1997c, 1997d, 1998, 1999,), Medema and Zerbe (1997, 1999), [...]
Page 78: References: Missing closing quote
Tullock, Gordon. 1998. “Comment on Roads, Bridges, Sunlight, and Private Property. Quoted in Walter Block and Matthew Block. Journal des Economistes et des Etudes Humaines 8 (2/3).
Page 79: Footnote 1: Capitol
Joan and Richard Sweeney, “Monetary Theory and the Great Capital Hill Baby-sitting Co-op Crisis,” Journal of Money, Banking, and Credit (1977), pp. 86–89.
QJAE 3.2:
Page 5: par. 1: diversity
This capability has expanded both volume diversity and product dversity across a wide range of products and services.
Page 41: References: Warren
Buffett, Waren E. 1988. Berkshire-Hathaway, Inc. Letters to Shareholders, 1987–1995.
Page 46: bottom par.: than
Surely, we must admit, mainline economists are more numerous that praxeologists.
Page 55: par. 3: Accidental quote should be removed
They state (p. 1): "presumably the rise in the last generation of Austrian economics' market share" in the academic milieu reflects mainly the empirical fact that Austrian concepts have proven useful and relevant in explaining contemporary human action."
Page 64: par. 1: Lachmann
The book brings together sources that to some Austrians may appear hardly compatible, if not inconsistent. Insiders know that there are some significant differences between the views of, say, Mises, Hayek, and Lachman, even with respect to method and methodology.
Page 64: par. 3: Lachmann
As Cochran and Glahe state at the beginning of chapter 11 (pp. 151-67) they intend equilibrium to mean the equilibrium of the economic system in the sense in which it is used in Lachman (1976, p. 151, n. 123).
Page 64: par. 4: Lachmann
According to Lachman, expectations are autonomous. "We cannot predict their mode of change as prompted by failure or success" (p. 129).
Page 78: References: Missing closing quote
Sechrest, Lawrence J. 1998. “Review of Risk and Business Cycles: New and Old Austrian Perspectives. Quarterly Journal of Austrian Economics 1 (3).
QJAE 3.3:
Page 28: bottom par.: than
Thus, any attempt at anticipating the presence or lack of discoordination amounts to nothing more that trying to outguess nature.
Page 33: References: Austrian
Cochran, John P., Steven T. Call, and Fred R. Glahe. 1999. "Credit Creation or Financial Intermediation?: Fractional-Reserve Banking in a Growing Economy." Quarterly Journal of Austrain Economics (Fall): 53-64.
Page 49: References: Missing closing quote
Garrison, Roger W. 1996. “Central Banking, Free Banking, and Financial Crisis. Review of Austrian Economics 9 (2): 109–28.
Page 49: References: Hans-Hermann
Hoppe, Hans-Herman. 1994.
Page 50: References: Routledge
———. 1996. Bank Deregulation and the Monetary Order. London: Rouledge.
Page 53: par. 1: addressed
But how narrow or how broad a market properly "counts" — how small or large a set of persons addresssed?
Page 73: Bibliography: Rotating
Cowen, Tyler, and Richard Rink. 1985. "Inconsistent Equilibrium Constructs: The Evenly Roating Economy of Mises and Rothbard."
Page 73: Bibliography: 1994
Gans, J.S., and G.B. Shepherd. 19994.
Page 86: par. 2: myopic
Relative to what other decisionmakers are the entrepreneurs supposedly mypoic?
QJAE 3.4:
Page 33: Footnote 22: participation
Second, this ranking does not encompass those rewards that are more highly valued than the total lottery prize, as well as those that are valued less than the participantion in the lottery.
Page 26: par. 4: double word
Any world relevant to economic science is peopled by human beings, human beings are free to choose, and this this very freedom of choice that defies any attempt to determine "laws" of what they choose.
Page 61: Footnote 10: double word
It is true that checks are guaranteed by the FDIC whereas MMMFs are not, but in today's environment of "too big to fail" and government bailout of any financial flop that threatens systemic crisis, is it reasonable to think the government would step in in the case of a large MMMF failure?
QUESTION: Page 68: References: Bad link (I can't find anything on this paper either).
Noland, Doug. 2000a. “A Theory on Money and Credit Creation.” Market commentary for 21 January at 216.46.231.211/Comm%20Archive/commarchive.htm.
QJAE 4.1:
Page 39: References: Lanham
Adams, Charles. 2000. When in the Course of Human Events: Arguing the Case for Southern Secession. Lantham, Md.: Rowman and Littlefield.
Page 42: References: Missing closing quote
Stromberg, Joseph R. 1979. “The War for Southern Independence: A Radical Libertarian Perspective. Journal of Libertarian Studies 3: 31–53.
Page 63: par. 3: predominantly
The Mises-Hayek exposition of the cycle reached its final form in the mid-1930s, and contemporary expositions have been predominatly restatements.
Page 76: par. 1: Lachmannian
This chapter is full of interesting ideas for those inclined to speculate about Lachmanian themes.
Page 77: par. 0: Lachmannian
One could hardly imagine anything less Lachmanian in spirit, in spite of Caserta’s attempt to find links to Lachmann’s concerns.
Page 77: par. 2: Lachmannian
While I readily agree with Horwitz’s (Lachmanian) understanding of institutions, I am less comfortable with his suggestion that Lachmann objectified them.
QJAE 4.2:
Page 47: par. 2: effects
Even small policy changes can have large affects on society that cannot be predicted.
QJAE 4.3:
Page 7: par. 3: it
The circumstances that generate that outcome are merely fortuitous and cannot reliably ensure or maintain that result; it is, as Garrison astutely puts its, full employment “by accident” (p. 131).
Page 22: par. 1: should be single quotes + a closing quote
If the above specified production function is incomplete, if it fails to identify all relevant inputs, then the shift factor A picks up the effects of the unidentified or omitted inputs. “Identifying and talking about them renders them “endogenous” (Lewin 1999, p. 76).
Page 23: par. 3: Snowdon
To place the importance of the book in a broader context, Brian Snowden, Howard Vane, and Peter Wynarczyk (1994, p. 351) [...]
Page 25: References: Snowdon
Snowden, Brian, Howard Vane, and Peter Wynarczyk. 1994. A Modern Guide to Macroeconomics: An Introduction to Competing Schools of Thought. Cheltenham, U.K.: Edward Elgar.
Page 25: References: Selgin
Yeager, Leland. [1986] 1997. “The Significance of Monetary Disequilibrium.” Cato Journal 6 (Fall): 369-95. Reprinted in The Fluttering Veil: Essays on Monetary Disequilibrium. George Selin, ed. Indianapolis, Ind.: Liberty Fund.
Page 40: par. 3: macroeconomic
First, Roger Garrison endeavors to pursue the analysis of marcoeconomic phenomena without taking account of the fact that money is a commodity.
Page 61: References: Accidental parenthesis
Strigl, Richard von. 2000. Capital and Production. Margaret Rudelich Hoppe and Hans-Hermann Hoppe, trans. (Auburn, Ala.: Ludwig von Mises Institute.
QJAE 4.4:
Page 21: Bibliography: Management
Eilig, Jerry, and Wayne Gable. 1993. Introduction to Market-Based Mangement. Fairfax, Va.: Center for the Study of Market Processes.
Page 56: Bibliography: Austrian
———. 1999. “Carl Menger: The Founding of the Austrian School.” In 15 Great Austrian Austrian Economists. Randall G. Holcombe, ed., Auburn, Ala.: Ludwig von Mises Institute.
Page 57: par. 0: harmonious
His point does not refer at all to the question of whether all members of society always act in harmony with each other, but to the question whether their interests are always hor-monious.
Page 61: par. 0: Bastiat’s
According to Pellissier-Tanon (2001), the most detailed presentation of Batiat’s value theory is in Gonnard (1941, pp. 338ff.).
Page 69: References: études
Pellissier-Tanon, Arnaud. 2001. “The Labor Theory of Value and Social Justice. The Teachings of Social Catholic Criticisms of Bastiat’s Doctrine.” Journal des Economistes et des étides humaines 11(2/3): 295-309.
Page 69: References: 1990
Niehans, Jürg. 19990. A History of Economic Theory: Classic Contributions, 1729-1890
Page 69: References: Frédéric
Nouvion, G. de. 1905. Fédéric Bastiat. Sa vie, son œuvre, ses doctrines. Paris.
Page 79: par. 0: Lachmannian
[...] and of Nicolai Foss and others employing Lachmanian themes in the area of economic organization, just to mention a few.
Page 82: References: Berkeley
———. 1971. The Legacy of Max Weber. Berkley Calif.: Glendessary Press.
Page 89-90: bottom par. to par. 0: Beito
Writing as a historian, Bieto takes Olasky’s arguments even further.
Page 91: par. 2: retirement
The president of one order said, upon the closing of their retirment home, “Social Security and other public assistance programs” had resulted in a situation where “the real need for our homes for aged members had practically ceased to exist” (p. 98).
Page 91: References: Missing opening quote
Mises, Ludwig von. 1978. Monetary Stabilization and Cyclical Policy.” In On the Manipulation of Money and Credit. Percy L. Greaves, ed. Dobbs Ferry, N.Y.: Free Market Books.
QJAE 5.1:
Page 23: par. 6: at
Interventionism “brings advantages to a limited group of people while it affects adversely all others, or a least a majority of others. . . . The interventions, therefore, may be regarded as privileges, which are granted to some at the expense of others” (Mises 1998, p. 19).
QJAE 5.2:
Page 35: par. 2: double word
The section section briefly outlines the Keynesian explanation of Japan’s recession and reviews Japan’s Keynesian policy attempts that have failed to cure the recession.
Page 45: par. 3: role
After market-based corrections, banks would serve in their roll as financial intermediaries again.
Page 61: par. 4: may
Our views on this matter my be summarized as follows:
Page 65: References: Contemporary
High, Jack. 1984/1985. “Bork’s Paradox: Static vs. Dynamic Efficiency in Antitrust Analysis.” Comtemporary Policy Issues 3:21-34.
Page 67: par. 1: success
Many experts opined that the publisher had a good chance of succees.
Page 75: How People Interact, Before #5: phenomena
All economic phonomena are the result of human action.
Page 77: References: Missing opening quote
Shah, Parth. 1997. The Discovery of Business Fluctuations: New Keynesians, Old Monetarists and Austrians.” Advances in Austrian Economics 5: 33–74.
QJAE 5.3:
Page 10: Footnote 1: Polanyi
See the interesting discussion of these problems in M. Polyani, The Logic of Liberty (London, 1951), in which the author is led from a study of the methods of scientific research to that of economic competition.
Page 50: par. 1, right before Footnote 33 in the text: Missing opening quote
Whether I calculate according to cost value or use value, the result is the same.”33
Page 74: par. 3: precisely
For pre-icsely the classical economists taught with the greatest emphasis the proposition that “corn is not high because a rent is paid” (that is, because the producers’ good use of land has a value) but “a rent is paid because corn is high. ”
Page 75: par. 2: double word
Directly, because the the first car, with which it is coupled, pulls it; indirectly, because the locomotive pulls it.
Page 76: par. 1: double word
—that is, not merely that the fourth car moves the the third, but also that the third car moves the fourth—
Page 95: par. 4: corresponding
They had to be divided accordingly, and the only result obtained (chimerical enough) was this;-every one had, it is true, his double number of counters, but every counter, instead of correspondiug to ten dollars, only represented five. Thus it was clearly shown that what is true of each is not always true of all.
Page 103: Footnote, par. 1: fluctuations
Q. But still you make insurance against currency flnctuations an item in your business to be regarded to some extent.
QJAE 5.4:
Page 25: par. 5: exchange
Metallic parities would engender fixed exchanged rates.
Page 26: par. 2: inconvertibility
All metallic convertibilty was abolished and national currencies were nothing more than inconvertible paper monies fluctuating erratically against each other.
Page 26: Heading: Inconvertibility
From De Facto Inconvertibiliy to Legal Inconvertibility
Page 26: bottom par.: double word
So the the European “snake” (1972) was created, with narrower margins, which permitted fluctuations only within the “international tunnel.”
Page 27: par. 2: exchange
Fixed exchanged rates had collapsed once again.
Page 30: References: Research
Nataf, Philippe. 1982. Competitive Money and Banking. Greenwich, Conn.: Committee for Monetary Reasearch and Education.
Page 33: par. 1: World
Characteristic of his intellectual interests, however, each of these books are devoted to public policy issues—European development after Word War II in the 1950s (1955), the problems of inflation in the 1970s (1979), the issue of unemployment in the early 1980s (1987a), the looming problem of debts and deficits in the late 1980s (1987b), and a proposal to restore monetary freedom (1985).
Page 36: References: Discontents + W.W. Norton
Stiglitz, Joseph. 2002. Globalization and Its Discontent. New York: Norton.
Page 45: par. 2: p.
Modeste’s argument against fiduciary media was based on analytical distinctions between different types of media of exchange. He followed the reasoning of Jean-Baptiste Say (1964, p,p. 217 ff.) in order to explain how money properly originates in barter.
Page 62: par. 1: coercively
Trying to render fractional reserve banking a lasting institution, the state seized the commodity money and replaced it by a fiat money, coersively imposed upon the economy.
Page 74: References: Jesus
Huerta de Soto, Jésus. 1995. “A Critical Analysis of Central Banks and Fractional-reserve Free Banking from the Austrian School Perspective.” Review of Austrian Economics 8 (2).
Page 93: par. 2: turning
It was therefore necessary that we first dealt with originary interest before turing, as we now do, to the analysis of money interest.
Page 107: par. 4: laborer-entrepreneur
The interest rate (money wage divided by expenditure on means of sustenance) is not high enough to incite this laborer-entrepreneurer to sell his services on the market.
Page 119: par. 2: Missing period at the end of "I.H.S."
I.H.S also began to actively promote the work of Lachmann (1977) and co-sponsored, along with the Cato Institute, the publication of a substantial volume of his essays.
Page 122: Missing Footnote 23 in the text. I placed it after the sentence:
A well-funded Austrian Ph.D. program was in place at New York University where Kirzner occupied a tenured faculty position, Lachmann held an annual one semester appointment as a Visiting Professor, and two additional, young Austrians were hired on as full-time faculty members in 1978.
Page 123: par. 1: Missing closing quote
Throughout the early 1980s, Rothbard continued to advance the Austrian paradigm in the areas of monetary analysis, applied economics, and political economy, publishing several classic essays, including: “The Myth of Neutral Taxation” (1981); “Law, Property Rights, and Air Pollution (1982a); [...]
Page 123: This is a second footnote 24. All the numbers beyond that were bumped by 1.
QJAE 6.1:
Page 28: par. 3: neoclassical
Although much of the economics profession stands by the Friedman (1953) hypothesis that assumptions are not important in the formation of economic theory, it certainly is not the case when it comes to presenting the neclassical theory of the firm, including perfect and imperfect competition.
Page 45: par. 1: maintained
It is clear that the choice of any one numbering system or utility index is arbitrary. The indifference loci are left unchanged by any alteration of the tags attached to each, providing ordinal relationships are maitained.
Page 68: par. 0: DeLong
While the modern mainstream assessment is that U.S. data support an interpretation that “fluctuations are best analyzed as being about trend rather than being beneath potential” GDP (Delong 2000, p. 92), a capital-based approach implies that cycles include both elements about trend and beneath potential.
Page 75: par. 2: Leijonhufvud
(3) it provides a very defensive, almost stereotypical, Keynesian (in the Leijonhufud sense of the term) view of twentieth-century economic history and policy;
Page 86: par. 1: nineteenth
It has been going on since the nineteeth century (well before the automobile, the favorite culprit in “smart-growth” dogma).
QJAE 6.2:
Page 15: par. 1: Wrong closing quote (should be a DOUBLE quote)
For instance, those members of “the poor’ with strong preferences for housing compared to nutrition bid away resources from those whose relative preferences favor nutrition; they do this by raising the costs of erecting grocery stores.
Page 19: Footnote 21: double word
Wicksell (1954, pp. 24-25) interprets Wieser’s equations as merely stating that under free competition factor prices “must be approximately the same in in all transactions,” but omitting the “how and why.”
Page 32: References: Herbener
Herberner, Jeffrey M. 1996. “Calculation and the Question of Arithmetic.” Review of Austrian Economics 9 (1).
Page 44: par. 2: double word
One of these was a special three hour examination in economics and international law, which were Schutz’s majors; he had in 1919-20 concentrated his university studies on international law and had simultaneously been enrolled as a student at the Viennese Export Academy (later the the Institute for World Trade).
Page 49: par. 1: humanities
The original idea had been to find at least one specialist in each subfield within the humanties and social sciences.
Page 51: par. 1: enthusiastic
But his friends, who attended these courses without previously having been particularly interested in economics, suddenly became very enthuasiastic and this was due to the way Mises presented the subject.
Page 89: bottom par.: Should be single quotes + a closing double quote
But the next year, as Wingfield describes it, a “Texas-based company . . . purchased the domain name ‘business.com’ for $150,000, a figure that “appears to dwarf the selling price of any previous Internet address.”
QJAE 6.3:
Page 14: blockquote: disequilibrium
The truth surely is, we now see with 20-20 hindsight, that the horse-drawn carriage industry, for all its placid, normal-profitability over many decades, was an industry in grave disequlibrium before the automobile actually appeared. (Kirzner 2000, p. 250; italics in the original)
Page 32: par. 3: English-language
Consider the following, from a model in a recent issue of a leading Englis-language economics journal.
Page 45: References: period instead of comma
Sears, Francis W., and Mark W. Zemansky, 1955. University Physics. 2nd ed. Reading, Mass.: Addison-Wesley.
Page 47: par. 1: fulfillment
From whence springs the increase in the range of means suitable to the fulfilment of individuals’ ends?
Page 72: par. 6: synthetic
Now consider some economic postulates, all of them synthethic a priori, and therefore necessarily true on the assumption we understand and deduce correctly.
Page 73: par. 0: hand
That is, just because there is a valid distinction to be made between high and low probability, on the one had, it does not mean that there is none to be drawn between claims about the world based upon empirical evidence and those based on apodictic reasoning, on the other.
Page 94: par. 3: Missing closing quote
In his comments about “Fiscal Policy and Social Security Policy During the 1990s, Rubin advises against the “politically easy path” of substituting equities
Page 95: very end: Georgia
State University of West Georigia
Page 100: References: Missing closing quote
Litner, John. 1965. “The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets. Review of Economics and Statistics 47: 13–37.
QJAE 6.4:
Page 11: Footnote 5: Bernanke
In response to the problems of deflation in Japan several members of the monetarist group including Milton Friedman and Ben Bernake calmly stated that the central bank should simply print up unlimited amounts of money, [...]
Page 16: Number 7: preceded
Note that macroeconomic problems are usually preceeded by large increases of the money supply (i.e., inflation).
Page 18: References: Capitol
Sweeny, Joan, and Richard James Sweeny. 1977. “Monetary Theory and the Great Capital Hill Babysitting Co-op Crisis.” Journal of Money, Credit and Banking 9 (1): 86–89.
Page 31: par. 1: led
That does not seem logical because there is no reason why a postponed and therefore severer crisis would not have lead to a political revolution.
Page 35: References: Taxonomy
Salerno, Joseph T. 2003. “An Austrian Taxanomy of Deflation.” [...]
Page 62: par. 2: occurring
In light of the empirical failure of new classical economics to give a plausible explanation for the occuring changes in output, employment, and unemployment, it is hardly astonishing that the basic principles of NUKE (see DeLong 2000) are virtually identical with the core principles of modern macroeconomics.
Page 62: par. 2: continuously
This trade-off is only possible, because in the short run wages and prices are not flexible enough to clear markets continously.
Page 63: par. 2: continuously
In the real world, individual prices do not adjust continously but are set discretionarily via staggering which is due to the fact that cost changes entail a change in prices.
Page 63: Footnote 7: elasticity
To explain nominal rigidities, i.e., a slow adjustment of the price level in reaction to changes in money supply, one needs real rigidities, i.e., a low elasticitiy of individually desired relative prices in reaction to changes in demand (Blanchard 1999, p. 22).
Page 64: par. 1: output
Higher aggregate demand can only lead to higher output if the market structure on goods markets provides price-setters with incentives to supply more ouput, even if the price stays set.
Page 64: last par.: uncertainties
The advantage of this concept is that transparency and coherency of monetary policy is strengthened, entailing the elimination of uncertainites concerning [...]
Page 65: first bullet: output
The central bank tries to close the gap between actual ouput and potential output.
Page 65: footnote 9: ending quote should be a RIGHT double quote
If the central bank aims at not only a certain inflation target but also to stabilize, we speak of “flexible“ inflation targeting.
Page 66: Footnote 14: coefficient
The coefficent on the expected future inflation is in this case not equal to 1, but should equal the subjective discount rate. Due to empirical research, a value of 1 is normally assumed.
Page 66: Footnote 14: output
Inflation dynamics implied by the ouput gap and the Phillips curve is the decisive characteristic of NUKE (Gali 2001, p. 10).
Page 70: par. 1: commitment
For transparency in monetary policy translates into a committment of the central bank to do everything, absolutely everything, to minimize its loss function.
Page 70: par. 2: double word
This means that twice a year, the president of the central bank should account for the central central bank’s doings in connection with the achievement of its goals in front of the legislature and thus in front of the public.
Page 71: References: Francisco
Daniel, Betty C. 2001. “Fiscal Policy and Inflation.” Federal Reserve Bank of San Fransico Economic Letter (July 13): 2001-20.
Page 72: References, in two occassions: Francisco
Walsh, Carl E. 2001a. “The Science (and Art) of Monetary Policy.” Federal Reserve Bank of San Fran-sico Economic Letter (May 4): 2001-13.
———. 1998. “The New Output-Inflation-Trade-off.” Federal Reserve Bank of San Fransico Economic Letter Number 98-104 (February 6).
Page 77: bottom par: output
But such an insurance policy against possible future instabilities in the financial sector would imply large costs in terms of ouput losses now.
Page 79: blockquote: double word
[...] —to treat what developed subsequently in the way which I then thought valid was as unsustainable as denying blankets and stimulants to a drunk who has fallen into an icy pond, on the the grounds that his original problem was overheating.
Page 95: blockquote: than
Observers of the business scene then, no less then their modern descendants, took it for granted that sharply declining [...]
Page 115: par. 4: later
This process, first discovered by Richard Cantillon and latter by David Hume, demonstrates that money, prices and trade in goods tend to balance or equilibrate between economies over time.
Page 118: Footnote 4: falsely
In his History of Monetary and Credit Theory (Rist 1966, pp. 140-49), which parenthetically analyzes brilliantly most of the texts included in this collection, Charles Rist accuses the English classical liberals, and in particular Ricardo, of falsly identifying bank notes and paper money [...]
QJAE 7.1:
NOTE: There is a reprint of 6.3.2. Double-check. (I didn't reOCR it)
Page 7: par. 1: loses
Once the concept of costs is separated from individual human beings, i.e., from the act of choosing, it looses its footing and so does the economic analysis.
Page 10: bottom par.: parties
But in each case the solution should focus on resolving the conflict and therefore allowing for the efficient formulation of plans by all parities involved.
Page 27: par. 1: Herbener
Almost a decade ago Joseph Salerno, Murray Rothbard, and Jeffery Herberner (hereafter referred to as SRH) published a set of articles in Review of Austrian Economics aimed [...]
Page 27: Author Bio: Administration
Odd J. Stalebrink is assistant professor of Public Administrtaion at West Virginia University.
Page 28: par. 1: writings
It is also illustrated in the paper that while there is strong textual evidence to support the SRH interpretation Hayek’s view of the market, it de-emphasizes Hayek’s later wrtitings on the broader issues of social order and progress, which emphasizes “discovery” and “learning.”
Page 37: References: Hans-Hermann
Hoppe, Hans-Herman. 1996. “Socialism: A Property or Knowledge Problem?” Review of Austrian Economics 9 (1): 143-49.
Page 69: par. 2: gauge
C&C argue that an objective guage of economic value would be much superior to subjective valuations reflected in market prices.
Page 71: par. 6: double word
Apparently, the market will not (at least not so strongly) define what counts as socially necessary labor time under C&Cs brand of socialism in which “labor does become become ‘directly social,’ in the sense that it is subordinated to a pre-established central plan” and where “the reshuffling of resources in line with changing social needs and priorities does not proceed via response of profit seeking firms to divergences between market prices and long-run equilibrium values” (pp. 10-20).
Page 74: Footnote 11: indispensability
The indispenisibility of money on the other hand is argued in Horwitz (1995).
Page 75: par. 6: epistemological
Nor is the difficulty just epistmological, though this enters in.
Page 76: References: Political
W. Paul Cockshott, and Allin F. Cottrell. 1997. “Information and Economics.” Research in Politcal Economy 16: 177-302.
Page 95: QJAE 7.1.10 was a reprint of QJAE 6.3.2.
QJAE 7.2:
Page 29: Author's name changed to "Bogdan Glăvan". It looks as if the 'ă' was encoded badly (showed up as two dots).
Page 47: Author Bio: Industrial
W. Duncan Reekie is the E.R Bradlow Professor of Industral Economics in the School of Economic and Business Sciences at the University of the Witwatersrand in Johannesburg, South Africa.
Page 52: bottom par.: fulfill
This “new breed” would detail policies to fulfil “the obligation of the state to improve the economic condition of the poor by favoring labor and redistributing income.”
Page 53: par. 3: communal
This was then consistent with the behavior of the early converts in their communual sharing of consumption goods.
Page 59: par. 1: communal
It was quickly demonstrated that the communual sharing was both impractical and fostered dishonesty (Acts 5: 1-10).
Page 71: blockquote: underestimated
[T]he extent of socialism in the present-day world is at the same time underestimatated in countries such as the United States and overestimated in Soviet Russia.
Page 71: Author Bio: Hülsmann
Peter Boettke would like to thank Guido Hüls-man and Joseph Salerno for encouraging him to present a paper on this topic at the conference.
Page 80: Footnote 10: supposed
Boettke (1993, pp. 57–72) discusses the contrast between how the system was suppose to operate in theory with how the system actually operated in practice.
Page 83: Footnote 14: Accidental opening quote
The inevitable emergence of “black markets” in the wake of the prohibition also generates a situation where the control, paradoxically, “is apt to serve as a monopoly grant of privilege to the black marketers. “For they are likely to be very different entrepreneurs from those who would have succeeded in this industry in a legal market” (1962, p. 786).
QJAE 7.3:
Page 9: par. 1: borne
It refers to an industry structure in which one multi-product firm is able to produce a combination of goods at a combined cost that is less than the cost that would be born by several firms manufacturing the individual goods or smaller sub groupings of goods.
Page 12: par. 2: dependent
The central concepts of contestability theory and its proposed regulation of prices are all crucially dependant upon the objectivity of opportunity cost.
Page 43: References: Institute
———. [1962] 1993. Man, Economy, and State: A Treatise on Economic Principles. Auburn, Ala.: Ludwig von Mises Institue.
Page 48: Footnote 4: discrepancies
Graham and Dodd (1934) stress the importance of price discrepanices numerous times, as does Mises (1998).
Page 53: Footnote 16: continuously
During a boom, credit expansion causes prices to be continously bid up to until they eventually “top out,” after which they fall because they are continously offered lower.
Page 64: Between blockquotes: Going from page 143 to 143. This is probably a wrong page number. (?)
Regarding Buffett’s thoughts on the EMT, Bernstein (1993, pp. 143-43) relates the following:
Page 68: References: Edition
Mises, Ludwig von. [1949] 1998. Human Action. Scholar’s Editon. Auburn, Ala.: Ludwig von Mises Institute.
Page 86: par. 2: reminiscent
In a way, it is reminscent of the labor theory of value.
QJAE 7.4:
Page 7: par. 1: maximize
They maximze their utility, just as bakers and shoemakers maximize their utilities through purposeful actions (Pyle 1983).
Page 40: References: Ludwig
———. 1999a. “Jean-Baptiste Say: Neglected Champion of Laissez-Faire.” In 15 Great Austrian Economists, Randall G. Holcombe, ed. Auburn, Ala.: Ludwg von Mises Institute. Pp. 45-58.
Page 82: bottom par.: lightning
For example, sends him into the woods where he is struck by lightening, assaults him and then he dies while under convalescence, etc.
Page 103: par. 1: accidental closing quote should be removed
The law has long recognized that one accused of a crime or tort is not responsible if the damage was really caused by an “intervening act” that breaks the chain of causal connection” between the actions of the accused and the damage that occurred.
Page 110: par. 2: occurred
In both cases, Reinach argues, A is the “cause” (our “cause-in-fact”) of B’s death, since B’s death would not have occured but for A’s having sent him into the forest.
QJAE 8.1:
Page 7: bottom of page blockquote: impending
succeeded, by means of an easy-money policy, inaugurated as soon as the symptoms of an impeding reaction were noticed, in prolonging the boom for two years beyond what would otherwise have been its natural end.
Page 12: par. 3: industrial
With greater regional variations in the prices of consumer goods—than in “widely traded products such as raw materials, agricultural foodstuffs and certain standardised semi-finished inductrial products” [...]
Page 14: References: Kegan
———. 1976. Law, Legislation and Liberty: A New Statement of the Liberal Principles of Justice and Political Economy. Vol. 2: The Mirage of Social Justice. London and Henley: Routledge and Keagan Paul.
Page 28: References: Missing closing quote
Bank of Japan. 2000. “Price Developments in Japan: A Review Focusing on the 1990s. Research and Statistics Department (October 6).
Page 54: par. 0: indicators
Leading indictors with good causal-economic links with the economy include the inverted yield curve and the index of leading economic indicators, the once official crystal ball of the economy that lately has had greater difficulty accurately predicting changes in the economy.
Page 80: References: Principles
Rothbard, Murray N. [1962] 1970. Man, Economy, and State: A Treatise on Economic Priniciples. 2 vols. Los Angeles: Nash.
Page 83: par. 4: Accidental closing quote needs to be removed.
DiLorenzo tackles this concern head on and destroys the myths of the “free-rider” and “eminent domain” problems.”
Page 90: par. 7: Inner quotes need to be SINGLE quotes, not DOUBLE.
“The idea of “absorption and diversion of credit” lacks analytic content except, perhaps, in a real bills framework.”
QJAE 8.2:
Page 43: par. 4: The closing quote should be placed BEFORE the parenthesis
Thus, Senator Daniel Webster defined a bank as an institution having “the power to issue promissory notes with a view to their circulation as money (Sumner 1971, p. 28).”
Page 55: par. 1: Hans-Hermann
[...] against criticisms also published in the RAE by Hans-Herman Hoppe (1994), Jesus Huerta de Soto (1995), and Jörg Guido Hülsmann (1996).
Page 65: par. 2: double word
Alternatively, if Selgin and White are right and we wrong, and such banks would be feasible, then merely because the risks of maturity-mismatching involved in fractional-reserve banking may seem worth taking ex ante does not mean that that they can’t or won’t prove ex post to have been a mistake.
Page 75: par. 0: every
[...] “silent partner” sharing a fraction of ever dollar a producer receives (PAS, p. 115).
Page 91: par. 1: policies
Free market polices are okay in a world of full employment, but when unemployment is with us we should act as if there is no scarcity.
Page 95: par. 1: difficulty
Economists and academics in general don’t have much difficultly appreciating Samuelson’s extraordinary contribution.
QJAE 8.3:
Page 43: par. 2: Missing closing quote
Mises (1966, p. 35) continues: “The idea that A could at the same time be non-A or that to prefer A to B could at the same time be to prefer B to A is simply inconceivable and absurd to a human mind. Does this imply—for Mises as well as for Aristotle [...]
Page 53: par. 1: bourgeois
The former held that bourgeous and proletariat experienced the world in different ways because they employ different “logics.”
Page 60: Author Bio: University
James Kimball is a Ph.D. candidate in economics at George Mason Univeristy.
Page 75: Footnote 45: Murray
Perhaps no author has been more prolific than Murry Rothbard.
Page 78: References: "Economics:" was accidentally not italic
———. 1972. Economics: Principles, Problems, and Policies. 5th ed. New York: McGraw-Hill.
Page 80: References: DiLorenzo
Dilorenzo, Thomas. 2001. “The Microsoft Conspiracy.” [...]
Page 82: par. 4: "Hülsman" should have two 'n's.
Unfortunately, Hülsman’s interpretation of Mises’s words are presented in a way that defies direct verification by a reader who is not conversant in German.
Page 82: par. 4: "Hülsman" should have two 'n's.
Second, Hülsman does not quote any statements from the 1940 edition but merely refers the reader to two pages of text (see his ftn. 4 on p. 80).
QJAE 8.4:
NOTE: There are mistake (?) notes in the sidebars.
Page 10: Footnote 13: Kirzner
See Kirnzer (1963, p. 20).
Page 25: Footnote 20: Vecchi
For recent examinations of Hayek’s psychology and its relationship to his other work, see Horwitz (2000) and De Vecci (2003).
Page 44: References: Should be a semicolon
———. 1981. “The Modern Corporation” Origins, Evolutions, Attributes.” Journal of Economic Literature 19: 1537–68.
Page 87: par. 3: chooses
This seems to be undeniable, and any attempt to explain why one choses to do x rather than y with reference to indifference rather than preference strikes one as a logical absurdity, a “category mistake.”
Page 69: par. 1: led
A politically-powerful coalition emerged to restore silver to full monetary status, consisting of farmers and other debtors, which eventually came to be lead by Bryan, and senators from the western states where silver mining was a major industry (Unger 1974).
Page 94: par. 1: Keynes’s
Here our author, after extensive paraphrasing of Keynes’ss views, states that Mises did not much more than disparage “the Keynesian insights.”
Page 97: par. 1: socialism
[...] Joseph Salerno on economic calculation under socilaism, [...]
Page 97: par. 1: Haberler
[...] James Sadowsky on so-called “wage slaves,” Morgan Reynolds on unions, Gottfried Harberler on international trade, [...]
QJAE 9.1:
Page 7: par. 2: receipts always
The person who has a receipt, and who wants to take out bullion, finds always plenty of bank credits, or bank money to buy at ordinary price; and the person who has bank money, and wants to take out bullion, finds receipt-salways in equal abundance.
Page 11: par. 0: against folly
But they still felt impelled to launch a didactic campaign in tracts, sermons and prints againstfolly, since its special wickedness had been in leading the common people astray.
Page 17: par. 0: econometricians
Additionally econometricans can reduce the number of data points observed in order to minimize problems with known structural breaks in time series analysis.
Page 17: par. 2: econometricians
This problem has also been observed by a number of econometricans (Christ 1993, [...]
Page 17: par. 3: econometricians
Mainstream economists and econometricans have begun to concede that there is no true econometric model that can perfectly describe an economy (Christ 1993, pp. 74-75; [...]
Page 18: par. 1: Econonometricians
Econometricans simply had to accept this serious challenge and began to strike back.
Page 18: par. 3: econometrcians
Consequently VAR models cannot help econometricans to discard the Lucas critique.
Page 20: par. 2: econometricians
Disengaged from the rational expectations hypothesis this new version of the Lucas critique is even more devastating for economic policymakers and econometricans.
Page 23: par. 1: econometrician
From this point of view an Austrian economist is the perfect econometrican.
Page 23: par. 2: bringing
But if two variables are indeed cointegrated there will be a mechanism (or process) brining about a move towards equilibrium.
Page 23: par. 2: econometricians
Today many econometricans seem to be ready to understand the Austrian message.
Page 23: par. 2: econometricians
As noted above, numerous econometricans have begun to question how econometric research was performed in the past.
Page 39: par. 1: thousand
Exports of steel products have declined from 1,069 thousands tons in 1989 to 505 thousand tons in 1999, while imports have fallen from 844.5 thousand tons to 487 thousand tons during the same period.
Page 44: References: Garrison
Garrision, Roger, 2001. Time and Money: The Macroeconomics of Capital Structure. London: Routledge.
Page 48: par. 4: Needs to turn into inner quotes + a closing quote at the end of the sentence.
They discuss “the role of expectations . . . [which] also constitute an independent source of shocks in “psychological” theories of the business cycle.
Page 48: Footnote 4: Lachmann
Formaini cites other Austrians on entrepreneurship. These are Carl Menger, Friedrich von Wieser, Friedrich A. von Hayek, Murray N. Rothbard, Ludwig Lachman, and Israel Kirzner.
Page 50: Footnote 6: market
[...] capacity in a number of lines of business rather than to financial causes, and it was his belief that easier money and a better bond markey would not help the situation but on the contrary might lead to further increases [...]
Page 68: par. 1: double word
However ARW = (ΣARWt)/150, t = 1-150. Therefore, people are basing their decisions in period 100 on an average value that depends on information (ARWt, t = 100-150) that that is not yet available!
Page 78: Footnote 56: ninth
Thanks to Tony Deden who stated, at the nineth Austrian Scholars Conference: “[You] cannot have honest accounting if you have dishonest money.”
Page 91: par. 2: Should be changed to inner quotes
With the third channel, falling output prices are particularly bad if nominal wages are rigid in the economy: “Deflation may be “worse” than inflation because of firms confronting rising real wages should nominal wage rigidity prevail” (p. 1).
Page 97: Footnote 10: exposition
For a recent presentation of the insulation thesis, and a systematic and convincing expostion of the error it contains, cf. Glavan (2005).
QJAE 9.2:
Page 37: bottom par.: Missing closing quote
[...] commitment to environmental concerns; “obviously the Audubon Society appraises the benefits from drilling as greater than the costs, and it acts in accordance with that appraisal (Lee 2001, pp. 216–19).
Page 51: Footnote 5: Sala-i-Martin
Barro (1991) and Barro and Sali-i-Martin (1995) have found that growth is related to initial schooling although this is usually assumed to be temporary.
Page 58: bottom par.: than
It is often forgotten that economic laws, by their very nature, are qualitative rather then quantitative.
Page 89: Title of Figure 2, "Vector Error Correction Model Impulse Response Runctions". Should it be "Functions"?
Page 92: Bibliography: Wrong quotation mark (should be LEFT)
———. 1985. ”A Subjectivist Theory of a Capital-Using Economy.”
Page 96: par. 3: nineteenth
The Bureau of Labor Statistics (2004) published estimates that show CPI was negative for 11 years in the late nineteeth century, including 1879 and 1895.
Page 96: Footnote 3: Keynesians
Keynes did not differentiate between good and bad deflation but his understanding of the subject was deeper than today’s Keyneisans.
QJAE 9.3:
Page 49: par. 1: Cantillon
I may therefore venture to offer a few observations on the subject, even though I may not be able to give an account which is exact and precise. (Cantillion, pp. 214-15/163/67)
Page 66: References: double word
Mises, Ludwig von. [1949] 1996. Human Action. San Francisco: Fox and Wilkes. Rothbard, Murray N. 1993. Man, Economy and State. Auburn, Ala.: Ludwig von Mises Mises Institute.
Page 69: References: Quarterly
Barnett, William II, and Walter Block. 2006. “Callaway and Vedder in Stabilization Policy.” Quaterly Journal of Austrian Economics 9, no. 1 (Spring): 57-81.
Page 74: Author's Name was moved to before the References section (to match all the other articles).
Page 77: bottom par.: ethnic
While the citizens of some single-payer systems have higher life expectancy than those in the U.S., this is due to the U.S. average being a composite of different ethic groups, each with sometimes significantly varying life expectancies.
QJAE 9.4:
Page 16: Footnote 27: Snowdon
Selective use of Snowdon and Vane’s (2005) comparative-based Modern Macroeconomics could fit the bill here.
Page 19: References: Snowdon
Snowden, Brian, and Howard R. Vane. 2005. Modern Macroeconomics. Northhampton, Mass.: Edward Elgar.
Page 25: par. 1: Snowdon
I have used Froyen’s Macroeconomics: Theory and Policies (2005) and most recently the newly released Modern Macroeconomics: Its Origins, Development, and Current State by Snowden and Vane (2005). Both Froyen’s and Snowden and Vane’s books are very suitable for this approach.
Page 25: par. 2: Snowdon
Virtues that make Snowden and Vane attractive, given present circumstances, include an outstanding bibliography and insightful interviews with major macroeconomic theorists.
Page 25: par. 2: Snowdon
Even with Garrison’s contribution, however, Snowden and Vane’s text lacks an Austrian core.
Page 25: par. 2: Snowdon
Additionally, Snowdon and Vane include a chapter on Austrian theory authored by Roger Garrison.
Page 26: References: Snowdon
Snowden, Brian and Howard R. Vane. 2005. Modern Macroeconomics: Its Origins, Development, and Current State. Cheltenham, U.K.: Edward Elgar.
Page 32: Footnote 6: Missing closing quote
Here “profit is taken in the accounting sense, rather than the economic sense of the term. That is, the imputed values of the resources possessed by the capitalist are not subtracted from his gross receipts.
QUESTION: Page 69: Footnote 1 is missing in the text.
Page 75: par. 1: Friedrich
The book also benefits from Skousen’s energy as an interviewer of “big names” including Milton Friedman and Friederich Hayek from whom he is able to quote relying on personal communication.
QJAE 10.1:
Page 65: Footnote 2: Sechrest
According to Larry Sechcrest (1999, p. 45), Say “deserves to be remembered, especially by Austrian economists, as a pivotal figure in the history of economic thought.”
Page 69: Footnote 14: Wanniski
Wanninski argues that it’s appropriate for the state to choose tax rates that correlate with the peak of the Laffer curve.
Page 75: par. 1: borne
Say even explains that there are cases where the tax burden is born solely by producers or solely by consumers.
Page 90: References: Missing closing quote
Graddy, Kathryn. 1995. “Testing for Imperfect Competition at the Fulton Fish Market. Rand Journal of Economics 26, no. 1 (Spring): 75–92.
Page 99: third blockquote: be
If . . . the transaction costs exceed the benefits from any trade, an agreement will not he reached.
Page 100: par. 3: Reisman’s
In the light of Brownstein and Riesman’s arguments, Hill’s advocacy for specific cases, in which the property rights approach “does not work,” has to be rejected.
QJAE 10.2:
Page 12: par. 1: fundamentally
Most funadmentally, it does not work because the essence of economics is that—learning from their errors—individuals act rationally.
Page 12: References: Kegan
———. 1978. New Studies in Philosophy, Politics, Economics and the History of Ideas. London and Henley: Routledge and Keagan Paul.
Page 12: References: Kegan
———. 1967. Studies in Philosophy, Politics, and Economics. London and Henley: Routledge and Keagan Paul.
Page 24: References: Massachusetts
Mortensen, Dale, 2003. Wage Dispersion: Why Are Similar Workers Paid Differently? Cambridge, Mass.: Massachussetts Institute of Technology Press.
Page 25: Author Bio: Stockholm
Erik Lakomaa is professor of economics at the Stockhom School of Economics.
Page 25: Author Bio: University
Thanks to George Selgin, Magnus Henrekson, Evelina Lorentzon, Håkan Lindgren, Harald Edqvist and Christoffer Rydland, seminar participants at the Austrian Scholars Conference, Uppsala Univerity, and Stockholm School of Economics.
Page 26: bottom par.: Parliament
The free banking system in Sweden emerged out of a political vacuum as a result of the power struggle between the king and the Parliamant and also the influence of economic laissez-faire.
Page 35: Footnote 20: Stockholms
Stockhoms Enskilda Bank explicitly tried to get female customers.
Page 37: Footnote 23: wealthy
At the same times S and L companies “Sparbanker” offered deposit services for not so weathy clients.
Page 43: References: Laissez-Faire
Cowen, Tyler, and Randall Kroszner. 1989. “Scottish Banking Before 1845: A Model for Laissez- Fare?” Journal of Money, Credit and Banking 21, no. 2 (May): 221–31.
Page 69: bottom par.: become
Once a highly rational mode of thought, Confucianism had became traditionalist and conservative (Balazs 1964).
Page 79: par. 0: vicious
This, of course, can lead to a vis-cious cycle of impoverishment.
Page 80: References: Massachusetts
Baumol, William. 1993. Entrepreneurship, Management and the Structure of Payoffs. Cambridge, Mass. and London: Massachussetts Institute of Technology Press.
QJAE 10.3:
Page "242": par. 7: Lachmann’s
On this basis, one can then rebuild a true economic science, in the Thomist sense (“Judgment and the Axiom of Action” section), which reconciles the mutable and immutable (“Social Ontology and Evolution” section) and thus answers Lachman’s theses.
QJAE 10.4:
Page 284: bottom par.: fulfill
Words utilized metaphorically fulfil a cognitive role that is not equivalent to the function fulfilled by possible literal surrogates.
Page 287: par. 3: fulfill
While some scholars believe that a diagnostic tool might be developed to fulfil this duty, others have suggested that the identification of metaphor relies to a large extent on our knowledge of what is to be a metaphorical statement and an assessment of whether a metaphorical reading is preferred to a literal one (Black 1979b).
Page 291: par. 2: fulfills
The cognitive-linguistic role that this mathematical metaphor fulfils is more complex than this.
Page 293: par. 1: fulfill
In science in general, metaphors might fulfil a number of important functions. At a most fundamental level metaphors provide a vehicle for the communication of new scientific theories (Boyd 1979).
Page 294: par. 2: for
Scholars operating at the frontiers of their fields may deploy the rhetorical function of metaphor to inform their colleagues of the nature fof their discoveries and persuade their colleagues of the importance of their discoveries.
Page 296: par. 2: fulfills
In science, this fulfils the role of connecting elements of nature together and providing new paths to follow toward their explication.
Page 312: References: Missing closing period
Loasby, Brian J. 1976. Choice, Complexity and Ignorance. Cambridge: Cambridge University
QJAE 11.1:
Page 14: Table 6 title: regression
Table 6 Double log regresion of Atkinson (measured at e=.25/.75) on M1, hs_plus, and gov_exp
Page 32: Footnote 35: Lachmann
Our interpretation of this method is based on Lachmann (1978) but his work is directly drawn from the famous contributions of Hicks, Lindahl, and Lundberg on process analysis (see Lachman 1978, for more details).
Page 33: Footnote 37: Lachmann
For more on these points see Lachamnn (1978).
Page 52: Footnote 16: presuppositions
Indeed, in their imaginative scenarios of cluster development strategies development economists seem to rely on little more than statist presupositions and popular dogma about market failure.
Page 56: par. 4: possess
However, the free market cannot be defended successfully by pointing out that policymakers do not posses enough information to allocate resources optimally, or by emphasizing the corrupt nature of the state.
QJAE 11.2:
Page 86: par. 2: the
One of they key assumptions of Austrian theory is strict methodological individualism, which conflicts with the representative agent approach of New Classical theory by implying heterogeneity.
Page 87: par. 1: borne
If a rival believes this judgment to be wrong, they cannot sell that production plan short—the capital is invested in the factory and when the error of judgment is born out by market conditions, it will be liquidated.
Page 90: par. 1: Missing closing quote
But as Garrison says “the Austrian theory does not hinge on there being any price-level inflation during the boom (Garrison 2001, p. 1).
Page 92: par. 0: its
And third, the main harm from loose monetary policy is not that it encourages entrepreneurs to behave more recklessly with capital, but that it encourages precisely the people who can’t afford capital at it’s natural rate to borrow, and makes them the marginal trader.
Page 92: References: Missing period
De Soto, Jesus Huerta. 2006. Money, Bank Credit, and Economic Cycles Auburn, Ala.: Ludwig von Mises Institute.
Page 112: Table 1: coastal
1920 Merchant Marine Act (Jones Act)—initial implementation of cabotage policy, requiring ships serving domestic and costal routes be U.S. owned, flagged, and crewed.
Page 125: par. 1: forever
If one were to start to count the whole numbers—one, two, three and so on—one could go on for ever.
Page 131: References: Competitive
———. 1940. “Socialist Calculation: The Completitive ‘Solution’.” Economica ns. 7 (26): 125–49.
Page 136: par. 2: are
Next, re the magnitude of A, a, because the magnitudes of α [...]
Page 148: par. 4: Böhm-Bawerk
Böhm Bawerk was already a well-known critic of Marx’s value theory which had led to modifications on the Marxist side.
Page 149: bottom par.: [s]ocialization
At the time, “[s]socialization schemes were being proposed everywhere”; Socialism is a response.
Page 160: par. 1: clothe
David Hume in his “Of the Balance of Trade” attacked this mercantilistic approach to the alcohol trade with the Cantillon-style argument that if France turned an acre into growing grapes they must then import the production of another area in order to feed and cloth those who work in the vineyard.
Page 182: par. 0: Prychitko
Kirzner’s concept of alertness can thus be seen as an addendum to the neoclassical understanding of market equilibrium. Kirzner’s approach, as Boettke (Boettke and Prychitka 1994, p. 3) describes it,
QJAE 11.3:
Page 185: References: Princeton
Kirzner, Israel M. 1963. Market Theory and the Price System. Princetonn N.J.: D. Van Nostrand.
Page 185-187: References: There are a lot of references to the same author in a row. Throughout the other QJAEs, they were replaced with "———.". I updated this.
Page 198: Footnote 7: role
Mises took over these Clarkian imaginary constructs and gave them a central roll in praxeological economic theory as “imaginary constructions,” e.g., the “evenly rotating economy” and the “final state of rest” (Salerno 2006).
Page 205: bottom par.: accidentally was a left single quote, should be a right single quote
The aim of this paper was to present a more realistic analysis than currently exists in Austrian economics of the entrepreneur‘s role in shaping and driving the market process.
Page 206: References: Missing closing quote
Lachmann, Ludwig M. 1976. “On the Central Concept of Austrian Economics: Market Process. In The Foundations of Modern Austrian Economics. Ed. Edwin G. Dolan. Kansas City, Mo.: Sheed & Ward. Pp. 126–32.
Page 244: par. 1: F.A. Hayek
This position draws some support from Hayek F. A. (1936), who writes in “Economics and Knowledge” and “The Use of Knowledge in Society” (1945) that a description of equilibria is best attained with the mathematical tools of neoclassical microeconomic theory, though much more is needed for an understanding of markets.
Page 248: Footnote 7: Missing opening quote:
Unless it is our aim to impress students with the esoteric quality of economists’ knowledge, we should teach no theory in the introductory course that cannot be put to work immediately” (Heyne 1991, p. x).
Page 260: References: Towson
Egger, John B. 2008. Elements of Economics. Towson, Maryland: Townson University Bookstore.
QJAE 12.1:
Page 31: par. 1: than
Why are people better off now then they were a century ago?
Page 35: References: Addison-Wesley
Perloff, Jeffrey M. 2004. Microeconomics. 3rd ed. Boston: Pearson Addison-Welsey.
Page 44: par. 2: Gutenberg
A straightforward example: Guttenberg captured a ridiculously small share of the total benefits that have been associated—and continue to be associated with—with the printing press.
Page 44: Footnote 8: Gutenberg
This does not consider discounting the flow of benefits from the temporal perspective of Guttenberg, but in this context it is more important to consider how the benefits are realized to other given individuals at other particular times.
Page 61: par. 5: exchange
Surely, not both statements can be true: your affirmation of the law of marginal utility and your particular description of the exhange. Isn’t your affirmation then falsified by your description of our exhange or vice versa?
Page 64: par. 0: occurring
Any complete analysis of action must involve both: a description of the start- and endpoint of action as well as an explanation of the change occuring from one point to another due to preference-demonstrating action.
Page 81: Subheading: Concern
A Cause for Concern or A Conern for the Cause?
QJAE 12.2:
Page 12: References: Changed to three em dashes in order to match the rest of the QJAEs when multiple of the same author.
Mises, Ludwig von. [1944] 1994. “Monetary Stabilization and Cyclical Policy.” In Classics in Austrian Economics: A Sampling in the History of a Tradition. Volume III: The Age of Mises and Hayek. Ed. Israel M. Kirzner. London: William Pickering.
Page 12: References: P.,
O’Driscoll, Gerald P,. Jr., and Mario Rizzo. 1985. The Economics of Time and Ignorance. New York: Basil Blackwell.
Page 15-17: Heading jumps from II to IV. I lowered the Roman Numerals by 1.
Page 59: References: Sraffa
Malthus, Thomas. 1951-55. Letters quoted from David Ricardo. The Works and Correspondence of David Ricardo. 10 vols. Ed. P. Saffra. London: Cambridge University Press.
Page 59: References: Sraffa
Ricardo, David. The Works and Correspondence of David Ricardo. 10 vols. Ed. P. Saffra. London: Cambridge University Press, 1951-1955.
Page 67: References: double word
Young, A.T. 2009. “A Capital-Based Theory of Economic Growth.” Quarterly Journal of of Austrian Economics 12 (1): 36–51.
Page 78: There is a second Footnote 1 located in the text, should be a #2.
Page 80: References: Missing the Volume #, which is 2
———. 1999. “The Origins of the Federal Reserve.” Quarterly Journal of Austrian Economics (Fall): 3–51.
QJAE 12.3:
Page 11: par. 1: double word
The new practice and the increased prosperity will be noticed by those in the clan closest to the innovators; they see evidence that that a division of labor is possible and that it results in a greater food supply.
Page 21: Footnote 20: treatise
The accounting portion of Pacioli’s teatise, whose full title is Summa di Arith-metica, Geometria, Proportioni et Proportionalita, [...]
Page 28: par. 0: it
Our theory of the emergence of institutions is not complete until is has incorporated coercive processes into economic life.
Page 30: References: Classification
Baladouni, Vahé. 1990. “An Early Attempt at Balance Sheet Classfication and Financial Reporting.” The Accounting Historians Journal 17 (1): 27-45.
Page 31: References: University
Dahlberg, Frances, ed. 1981. Woman the Gatherer. New Haven, Conn. Yale Uni-vesity Press.
Page 34: References: Political
O’Driscoll, Gerald P. 1986. “Money: Menger’s Evolutionary Theory.” History of Politcal Economy 18 (4): 601-16. Reprinted in Blaug, ed. 1992.
Page 35: References: Quintessence
Sombart, Werner. [1915] 1976. The Quintesssence of Capitalism. New York: Howard Fertig.
Page 36: References: Malcolm
Webb, Malcom C. 1974. “Exchange Networks: Prehistory.” Annual Review of Anthropology 3: 357-83.
Page 84: Heading IV should be VI.
Page 86: Heading V should be VII.
Page 87: References: Missing closing quote
———. 1986. “Spontaneous Order and the Subjectivity of Expectations: A Contribution to the Lachmann-O’Driscoll Problem. In Subjectivism, Intelligibility and Economic Understanding. Israel M. Kirzner, ed. New York: New York University Press.
Page 98: par. 1: equates
And he explicitly equats Robbinsian economizing with the later neoclassical paradigm of “maximizing” in which all ends and means are given and known to the choosers, whose only “choice” therefore consists in allocating the known means among the given ends so as to “maximize” utility or profit.
QJAE 12.4:
Page 38: par. 1: double word
With the resumption of specie payment in 1879, there was an expectation that the the quality of the money would increase resulting in an increase in purchasing power (Bagus 2008).
Page 44: References: double word
Rist, Charles. 1966. History of Monetary and Credit Theory: From John Law to to the Present Day. New York: Augustus M. Kelley.
Page 47: par. 1: vain
Diamond’s failure can be attributed to a vane attempt to attribute major social developments to geographic and environmental factors.
Page 51: par. 2: manner
While the concept of complexity as applied to society seems critical to Diamond’s explication of societal ascendance, he fails to actually define the term in a manor that bears on the realities of the contemporary world.
Page 101: par. 1: Missing opening quote
Mises (2003, p. 19) explicitly considered Robbins as part of the tradition that conceived human action as the central concept of economic science, writing, [T]he subject of our science is human action. . . . . The investigations of . . . Cairnes, Bagehot, Menger, Max Weber and Robbins show that they are all guided by this idea.” Mises (2003, pp. 18–24)
