Issues in the Philosophy of Economics

This paper has two goals. The first is to fill a gap in the literature on inductive risk by exploring the relevance of the notion of inductive risk to macroeconomics and monetary policy. The second goal is to draw some general lessons about inductive risk from the case discussed. The most important of these lessons is that the notion of inductive risk is no less relevant to the relationship between the proximate and distal goals of policy than it is to (...) the relationship between policies and their goals. (shrink)

This paper proposes that goods (the things exchanged in financial transactions and an object of study in economics) should be individuated according to a two-place relation constituted by an object and a description. Several of the problems in contemporary philosophy of economics involve shifting focus from objects to descriptions, while certain phenomena central to micro-economics, market regulation, and political economy require consideration of one of the two places. The paper argues thatby considering both constituents in a relation, many of those (...) issues can be more effectively addressed, communicated, and even resolved. The issues that may be so resolved include the seminal discussions of transformable goods, or goods whose existenceor relevant properties are impacted by their means of acquisition (e.g., buying, giving, awarding, etc.). The two-place approachto individuation shows how the cases of transformable goods can be more effectively addressed without incurring problematicmetaphysical commitments which may spiral out into confusion in the ethical and social scientific literature. The paper thenargues that the two-place approach can be leveraged into more fruitful discussion in microeconomics and the ongoing literature inthe metaphysics and ethics of markets. -/- . (shrink)

According to some philosophers and social scientists, mainstream economic theories currently play an unprecedented role in shaping human societies. This phenomenon can be linked to the dissemination of methodological individualism, where common goods are interpreted as reducible to aggregates of individuals' well-being. Nonetheless, some emergent difficulties of economics in coping with global institutional issues have encouraged some authors to revise that paradigm. In the last three decades, there has been a parallel growing philosophical interest in investigating social sciences' epistemological and (...) ontological foundations. Unfortunately, these two research trends have often not communicated systematically enough to understand the specific ontology of collective aims. It is still unclear whether some irreducible social goods exist and how the answer to this question can set up a consistent understanding of cooperative actions. This dissertation addresses this issue, drawing on philosophical investigations about collective intentionality. It claims that a coherent ontological taxonomy of irreducible and reducible social goods is theoretically viable and can reframe prevailing approaches to collective action dilemmas influenced by the traditional economic categorisation of goods. The research begins by analysing how the influential theory of public goods has paved the way for some social and moral impasses. Furthermore, some theoretical proposals suggesting the existence of relational goods and common-pool resources are scrutinised. Hence, a refutation of the ontological reduction of all social goods to individual ones is developed, arguing that a specific form of cooperation, grounded in we-intentions and we-reasoning, shows the plausibility of the existence of some kinds of irreducible collective goods. Expanding on that view, a refinement of this categorisation of social goods is put forward by underlying the function of some relational entities, such as trust and shared sensemaking processes, in making cooperation robust in uncertain environments. Finally, by applying the taxonomy to collective action gridlocks regarding climate change, digital information, and public education, the consistency of this hypothesis is tested, showing that a pluralistic ontological account of social goods might improve the moral understanding of current social dilemmas. (shrink)

I propose a solution to a problem raised by E.G. West’s paper “Adam Smith’s Two Views on the Division of Labour.” Smith seems committed to the views that the division of labour makes people more and less intelligent.

The Austrian School seems to remain outside the debate on the realism of economic models. In principle, given the association of the term “model” with the Chicago School, and also for understanding that Hayek had critized the model of perfect competition as unrealistic. Even though in previous opportunities we showed how the theory of market as a process could be understood as the model of the Austrian School, and that Hayek’s criticism to the model of perfect competition was not so (...) much of unrealistic, but that it was wrongly stated (Zanotti & Borella, 2015), and we developed the ontological foundation of the model in Hayek’s thought (Borella, 2019), in this paper we will show how it is posible to compare pattern predictions with models, and how in this sense, the Austrian School, also seems to get near, even without sufficiently noticing it, to the discussion on models in economics and their realism. Keywords: Realism of models- Hayek- pattern predictions-models . (shrink)

Local Currencies, Local Exchange Trading Systems, and Time Banks are all part of a new social movement that aims to restrict money's purchasing power within a certain geographic area, or within a certain community. According to their proponents, these restrictions may contribute to building sustainable local economies, supporting local businesses and creating “warmer” social relations. This article inquires whether the overall enthusiasm that surrounds alternative currencies is justified. It argues that the potential benefits of these currencies are not sufficient to (...) justify the restrictions they impose on money's purchasing power. Turning these currencies into effective channels of change, by increasing their scope and their strength, could severely hinder the pursuit of social justice, in a way that is probably not even necessary for achieving their objectives. The paper concludes that large-scale limitations of money's purchasing power are, therefore, undesirable. (shrink)

El concepto de desarrollo humano del Programa de las Naciones Unidas para el Desarrollo (PNUD) surge en 1990 como una crítica a la consideración de la economía como el fin último de los esfuerzos del desarrollo. En la visión del PNUD, la economía es considerada un fin relativo, es decir, un fin y un medio para el desarrollo humano. Al considerar, por su parte, el fin del desarrollo humano, este es identificado con el ensanchamiento de las opciones y libertades de (...) que gozan los individuos. En este sentido, este concepto de desarrollo humano hace alusión a una práctica política más que a un entendimiento ético-ontológico del ser humano, evitando referirse a desarrollo humano entendido como un desarrollo del ser humano. Este artículo explora los antecedentes del concepto del desarrollo humano del PNUD y los fines que consideran estos enfoques previos. Se observa que la consideración subjetivista del PNUD proviene de la teoría de Amartya Sen, quien queda sujeto a la crítica objetivista de Martha Nussbaum al no considera un fin objetivo para los asuntos humanos, crítica que puede de igual manera aplicarse al concepto de desarrollo humano del PNUD. (shrink)

Conocer los mecanismos que operan en el mundo social es tarea fundamental de la economía como ciencia. La transformación del mundo social está vinculada a la reorientación de esta disciplina. Tal es la propuesta de Tony Lawson y la Escuela de Cambridge. Para que la economía sea reorientada ha de ajustarse a los presupuestos ontológicos del Realismo Crítico. En este trabajo se intentará profundizar en la naturaleza de los mecanismos y su relación con la economía como ciencia, y se presentarán (...) dos dificultades en torno a esta noción: a) la posibilidad de una teoría económica de sistemas abiertos, y b) el conocimiento de los mecanismos. (shrink)

El Realismo Crítico Auténtico (RCA) sostenido por Uskali Mäki se distingue del Realismo Crítico de Lawson. En el marco del Realismo Mínimo se explicitará qué es el RCA y se presentará el Realismo Posible de los modelos económicos en su versión MISS. Se diferenciará el Realismo Mínimo del Realismo Científico Standard. Se desarrollarán las dificultades en torno al RCA.

El presente trabajo intenta profundizar en la noción de mecanismo en el Realismo Crítico de Tony Lawson. Penetraremos en la naturaleza de los mecanismos en este autor. Señalaremos su importancia para conocer el reino social, transformarlo y reorientar la economía. Mostraremos algunas dificultades presentes en la propuesta de Lawson en torno a esta noción: acerca de la viabilidad de una teoría económica para los sistemas abiertos; sobre el valor explicativo de los transfácticos y las posibilidades de conocer los mecanismos.

Se analizará en este texto la noción de aislamiento en el Realismo Crítico de Tony Lawson y su relación con su posición frente al uso de los modelos económicos mainstream para acceder al mundo social. Distinguiremos las nociones de abstracción y aislamiento en este autor. Mostraremos la irreductibilidad de las mismas y que la consideración de la complejidad de la realidad social se relaciona con su posición sobre el rol del aislamiento para llegar a ella.

Tony Lawson, fundador del Grupo de Ontología Social y del Taller Realista de Cambridge, ha propuesto el realismo crítico para reorientar la economía. La transformación del mundo social, que intenta Lawson, surge de la adhesión al realismo crítico, esto es, de trasladar el realismo trascendental de Roy Bhaskar al reino social. Con el propósito de profundizar en las críticas a este movimiento, explicitaremos en qué consiste el realismo crítico, y cuáles son los presupuestos filosóficos de la mainstream según este autor. (...) Plantearemos las críticas en torno a: a) la noción de economía mainstream, b) las posibilidades de una economía fundada en la ontología social, c) el realismo de los modelos económicos y d) las nociones de aislamiento y abstracción. (shrink)

Karl Popper presenta al realismo como su posición acerca del conocimiento, distinguiéndola del instrumentalismo y del esencialismo. Ataca del primero la consideración meramente instrumental de las teorías científicas. Del segundo, critica que sostenga la posibilidad de establecer la verdad definitiva de las teorías, y que éstas describen esencias. El instrumentalismo coincide con Popper en que no hay conocimiento de esencias a través de las teorías científicas, pero de ello infiere que las teorías son meros instrumentos. Popper señala que el carácter (...) meramente instrumental de las teorías las vuelve irrefutables. Porque un instrumento de predicción no puede ser refutado (cf. Popper (1972a, p. 149)). Además, el instrumentalismo no puede explicar el interés del científico por la verdad. Su esencialismo modificado, toma del esencialismo que “el científico aspira a una verdadera descripción del mundo o de algunos de sus aspectos, y a una explicación verdadera de los hechos observables” (Popper, 1972a, p. 150). Pero agrega que no es posible saber con certeza si sus hallazgos son verdaderos. Resaltar el carácter conjetural de las teorías científicas no implica disminuir la aspiración del científico a describir algo real. (shrink)

Cuestiones vinculadas a la responsabilidad social empresaria y la presencia de valores éticos en las empresas han cobrado especial importancia. Si bien no siempre se manifiestan concretamente, al menos se han hecho presentes en los aspectos a considerar en las organizaciones sociales. Pero los mayores inconvenientes al tratar el tema de la ética en la empresa, no residen en señalar si hay o no valores que rigen la práctica de las organizaciones sociales, porque en sentido amplio todos estaríamos de acuerdo (...) en que los hay, sino en determinar cuál es el contenido de la ética a la que se hace referencia cuando se habla de ética de la empresa; donde el concepto " valor " , ya no es entendido en sentido amplio, y " se convierte " en " determinados valores éticos " que ordenan o " debieran ordenar " el quehacer de las organizaciones sociales. Con el fin de señalar el contenido propio de esta ética, y siguiendo la propuesta de Adela Cortina, intentaremos penetrar en esto que la autora ha llamado ética de mínimos, sobre la que se apoya la ética de máximos que permite a las personas alcanzar la felicidad. (shrink)

El presente trabajo intenta profundizar en la noción de racionalidad y la lógica de la situación de Karl Popper en el marco del debate entre “economía sustantiva” y “economía formal o instrumental”. Con tal propósito realizaremos una breve aproximación histórica al concepto de racionalidad económica señalando los distintos aportes de diversos autores a la cuestión. Este marco histórico permitirá encuadrar el planteo que Karl R. Popper hace de la lógica de la situación como metodología de las ciencias sociales tomada de (...) la teoría económica. En cuanto a la racionalidad y la lógica de la situación en Popper distinguiremos algunas notas acerca del análisis situacional y de la noción de racionalidad que subyace al mismo. Analizaremos el principio de racionalidad y el debate en torno al status epistemológico de tal principio. (shrink)

La cuestión del principio de racionalidad en el pensamiento de Karl Popper pareciera no mostrarse con precisión (observación hecha por diversos autores), al menos no como lo es su propuesta falsacionista. Pero intentaré retomar las principales notas sobre este principio e indicar algunas aproximaciones al debate epistemológico que surgen en torno a él. Popper trata de hallar un método que permita el conocimiento de las ciencias naturales y de las ciencias sociales, proponiendo un monismo metodológico. Sin embargo, al referirse a (...) las ciencias sociales, señala que éstas han de realizar explicaciones basadas en tendencias que permitan construir modelos “en términos de individuos”, llamando a esto “individualismo metodológico.” Mostrando que en las ciencias sociales intervienen proposiciones históricas singulares, se hace presente la dificultad en torno a estas ciencias; en relación a esto explica que en la mayoría de las situaciones sociales hay un elemento de racionalidad, introduciendo así el “método de construcción racional o lógica” o “método cero.”. (shrink)

La presente obra ofrece un análisis crítico de la filosofía de la economía de Uskali Mäki; en particular de la consideración realista científica de la economía. Se intenta a lo largo del texto responder, de algún modo, a las preguntas que plantea Lehtinen en la introducción: “¿Están los economistas aspirando en absoluto a la verdad, o están solamente jugando un juego intelectual en que tales supuestos son aceptables por alguna razón misteriosa? ¿Están estudiando la economía en serio? ¿Están simplemente desinteresados (...) en la verdad?, o ¿hay tal vez alguna otra forma de considerar sus prácticas de modelar?” p. 1. (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.

Esta obra se encuadra en la discusión ortodoxia-heterodoxia en economía, en el marco de la epistemología de la economía y dentro de la filosofía de la ciencia. El cuadro general es una discusión metodológica en términos de economía: si los modelos formales mainstream son o no, aquello que nos permite explicar, predecir, y/o alcanzar a comprender algo del mundo social. En este ámbito el texto de Fullbrook se enmarca en la llamada economía heterodoxa, apartándose de la economía mainstream, el dogmatismo (...) narrativo y el atomismo ontológico (Fullbrook, 2015 y 2016). (shrink)

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.

Introducir un recorrido a través de la historia y la teoría propia de la filosofía dela economía es una tarea del todo ambiciosa, sin embargo, Mariusz Maziarz lo lleva adelante en esta obra, que se puede considerar un manual actualizado de la filosofía de la economía y, en particular, de la epistemología de la economía. Aun-que no es un libro de historia del pensamiento económico ni de historia de la filosofía de las ciencias, sino más bien una iniciación ordenada a (...) los problemas de la epistemología de la economía, ellos se fundan en la filosofía de la ciencia y están atravesados por cuestiones y debates históricos. Quizás algo de eso sea aquello que Maziarz quiere desenredar en este texto. (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)

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)

El objetivo del presente trabajo es señalar algunas primeras aproximaciones a la cuestión del principio de racionalidad en el pensamiento de Karl Popper. Si bien este tema específicamente pareciera no mostrarse con precisión, (cuestión marcada por diversos autores), al menos no como lo es su propuesta falsacionista, se intentará retomar las principales notas sobre el principio de racionalidad e indicar algunas aproximaciones al debate epistemológico que surge en torno a este principio.

Even though Popper, Lawson and Mäki are realists, the three of them understand by realism something different and support different positions on the use of models in economics. In this article we will compare the three proposals on their conceptions of reality, the function and the nature of economic models and their use to study the social world.

This paper tries to deepen the notion of isolation in Tony Lawson´s Critical Realism and its relation with his position on the use of mainstream economic models to access the social world. I distinguish the notion of isolation and abstraction in this author. I show that the consideration of the complexity of social reality is related to his position on the role of isolation to reach it. Lawson´s social ontology is central to establish what the role is that isolation performs (...) in the knowledge of the social realm. There is, in this author, a pre-eminence of the ontological over the theoretical. How the world is determines the methodological possibilities to know it. (shrink)

The goal of this article is to show that instrumental rationality and utility that have been used in economics for many years does not work well. What is presented in the article is how significant the influence of utilitarianism has been on economics and why the economists get rid of humans’ goals and motivations. It is shown in the article that the human who decides in present is absolutely different from the human who decides over time. Many economists neglected this (...) problem because they wanted to have an effective and simple model. Becker’s economic method is presented as a dead end to which economics has been brought to. It is impossible to connect different selves of one human being by using the utility measure. The works of Schelling and J.S. Mill are used to explain this impossibility. The conclusion of this article is that instrumental rationality and utility have affected economics significantly. But, this simplified view on human nature is no longer valid. Hence, economics needs to think not only about the means but also about the human goals. Economics needs to rebuff relativism and show people how to achieve well-being. If we want to help people with their self-governance, we will have to choose reason over emotions. (shrink)

In 2001 soon after the Asian Crises of 1997-1998, the DotcomBubble, 9/11, the Enron crises triggered a fraud crisis in Wall Street that impacted the market to the core. Since then scandals such as the Lehman Brothers and WorldCom in 2007-2008 and the Great Recession have surpassed it, Enron still remains one of the most important cases of fraudulent accounting. In 2000’s even though the financial industry had become highly regulated, deregulation of the energy industry allowed companies to place bets (...) on future prices. At the peak of the dotcom bubble Enron was named as a star innovator but when the dotcom bubble burst, Enron’s plan to build high speed internet did not flourish and investors started to realize losses. Furthermore, the financial losses of the operations were hid using the market to market accounting technique instead of book value and using special purpose entities to hide debt. The root cause that was identified as a company with a toxic corporate culture focused on officer compensation rather than social responsibility and hence faulty leadership. Is it possible then that; ethical accounting practices, social responsibility and ethics all become inferior goods as income rises in an ‘irrationally exuberant’era? (shrink)

The credit crises experienced in the US in year 2008 is labeled as perhaps the most significant crises since the great depression. The roots of the crises were found in the default of the sub-prime mortgages and the failure occurred in both the US and the UK. Due to the integrated nature of international financial systems the spillover impacted many countries as the economies in Asia and Europe were purchasers of the sub-prime mortgages that originated in both UK and US. (...) The impact of the credit crises in Canada is of unique importance due to the close proximity to US, and both the US and Canada being of great strategic importance to each other as well as one of the largest trading partners.Even though the international financial credit crises adversely impacted many countries, the evidence that has come across recent years point towards the conclusion that Canada was able to weather the crises much better than many other countries. (shrink)

Building on the system of reason provided for by the Greek philosopher and specifically Aristotle, St. Thomas Aquinas built a comprehensive system and theory of natural law which has lasted through the ages. The theory was further developed in the Middle Ages and in the Enlightenment Ages by many a prominent philosopher and economist and has been recognized in the Modern Age. The natural law-theory and system has been repeatedly applied to the spheres of economic thought and has produced many (...) lasting contributions such as private property rights and individual rights. In recent times with the collapses of the financial system and rapid globalization, there has been a renewed interest in the application of natural law theory to economics to counter a certain anthropology and distortion of values created by a modern economic system of selfpreservation deriving its insights from the philosophies of Thomas Hobbes and Niccolo Machiavelli. (shrink)

This paper argues that economics is epistemologically limited in at least two main ways: first, economics fails at managing uncertainty as effectively as natural sciences do; second, economics assumes that rational patterns of utility maximization are real just to ensure deduction within economic models. Hence, this paper maintains that the high level of abstraction from reality of economics limits its explanations of its constantly changing ontology, i.e. markets. In particular, this paper shows that the epistemological limitations of economics become evident (...) once two examples from today’s world are considered, namely: the substitution of physical labor with AI-powered machines; and the introduction of the so-called Universal Basic Income (UBI), i.e. governmental stipends paid to those citizens whose job has been replaced by machines. Importantly, this paper argues that if an economy were to reach to the point where machines run any sort of private or public business and humans earn only the UBI, then such a situation would represent a limit case for economics. Indeed, this paper finds that although machines would represent the perfect example of rational utility-maximizers, in such a limit situation standard economic theory would most likely fail at predicting long-term economic outcomes. (shrink)

In economics, thought experiments are frequently justified by the difficulty of conducting controlled experiments. They serve several functions, such as establishing causal facts, isolating tendencies, and allowing inferences from models to reality. In this paper, I argue that thought experiments served a further function in economics: facilitating the quantitative definition and measurement of the theoretical concept of utility, thereby bridging the gap between theory and statistical data. I support my argument by a case study, the “hypothetical experiments” of the Norwegian (...) economist Ragnar Frisch (1895-1973). Frisch aimed to eliminate introspection and a subjective concept of utility from economic reasoning. At the same time, he sought behavioral foundations for economic theory that enabled quantitative reasoning. By using thought experiments to justify his set of choice axioms and facilitating the operationalization of utility, Frisch circumvented the problem of observing utility via actual experiments without eliminating the concept of utility from economic theory altogether. As such, these experiments helped Frisch to empirically support the theory’s most important results, such as the laws of demand and supply, without the input of new empirical findings. I suggest that Frisch’s experiments fulfill the main characteristics of thought experiments. (shrink)

Tässä luvussa tarkastelemme hypoteesien testaamista ja kokeellista kausaalista järkeilyä tieteenfilosofisesta näkökulmasta. Arvioimme kokeellisen menetelmän mahdollisuuksia ja rajoituksia yhteiskuntatieteellisen tutkimuksen kontekstissa, jossa luonnontieteille ominaisia yleispäteviä teorioita harvoin on saatavilla ja jossa suoraviivaisiin kausaaliväitteisiin suhtaudutaan usein epäillen. Tämä luku ei siis ole menetelmäopas, joka kädestä pitäen opastaisi, kuinka yhteiskuntatieteellisiä kokeita tulisi rakentaa, vaan katsaus niihin perustaviin metodologisiin kysymyksiin ja periaatteisiin, joihin varsinaiset menetelmät nojaavat.

Consistindo em um processo ético-jurídico de deliberação coletiva, o que se impõe à manifestação da Vontade Geral como um fenômeno histórico-cultural é a condição de imanência que a caracteriza em um movimento dinâmico-dialético que demanda uma formação econômico-social que possibilite a emergência de valores e práticas, condutas e comportamentos, necessidades e objetivos que, tendo como fundamento o interesse comum, se lhe correspondam, convergindo para uma forma de autodeterminação que guarda possibilidade de promover a superação da alienação das capacidades humanas no (...) contexto das relações socioprodutivas, a saber, a autogestão. Tal experiência social de autodeterminação coletiva, conforme assinala o artigo, envolve tanto a esfera política quanto o âmbito econômico e encerra a noção que implica desde a igualdade substancial até a efetiva participação política, sobrepondo-se ao viés mercadológico da organização econômico-social vigente e à estrutura burocrática corporificada pelo Estado no sistema capitalista. (shrink)

L’activité entrepreneuriale génère l’activité entrepreneuriale. Cet article développe cette idée dans une perspective autrichienne. Nous envisageons les entrepreneurs kirznériens sous l’angle de l’apprentissage hayékien. L’activité entrepreneuriale développe l’activité entrepreneuriale de deux manières. Premièrement, la mise en oeuvre d’une nouvelle tentative crée de nouvelles opportunités pour d’autres nouvelles tentatives. Deuxièmement, chaque acte entrepreneurial kirznérien est un exemple incitant les autres à faire de même. Nous mettons l’accent sur le second point. Chaque nouvelle tentative entrepreneuriale modifie les perceptions des autres quant à (...) l’émergence des opportunités, aux gens qui peuvent les saisir, etc. Elle rend les gens plus vigilants. Ainsi, l’action entrepreneuriale crée des externalités positives. Ces externalités expliquent que des communautés, par ailleurs identiques, donnent lieu à des niveaux différents de tentatives entrepreneuriales.Entrepreneurship breeds entrepreneurship. This insight is developed within the context of Austrian economics. We view Kirznerian entrepreneurs as Hayekian learners. Entrepreneurship breeds entrepreneurship two ways. First, the founding of a new venture creates new opportunities for other new ventures. Second, each act of Kirznerian entrepreneurship is a favorable example for others to follow. We concentrate on the second point. Each act of newventure entrepreneurship changes the perceptions of others about how new ventures are founded, what sort of person might do it, and so on. It makes people more alert. Thus, entrepreneurship creates a network externality. This externality explains the fact that otherwise similar communities produce dissimilar levels of new-venture entrepreneurship. (shrink)