Forum for Social Economics

, Volume 31, Issue 2, pp 1–23 | Cite as

The economics of Frank H. Knight: An Austrian interpretation

  • Tony Fu-Lai Yu


This paper interprets, in the modern Austrian economics perspective, Frank H. Knight's three core contributions; namely, economic methodology, theories of human action, uncertainty and entrepreneurship. Though Knight is regarded as one of the founding fathers of the Chicago School of economics, this paper argues that Knight's contributions are essentially Austrian. Influenced by William James, Henri Bergson and Max Weber, Knight's subjectivist economics can be seen as a link between Carl Menger and Ludwig von Mises in the history of Austrian subjectivism. This paper further suggests that Knight may be more appropriately located in the Austrian-German School, for the reason that the term “Austrian School” is too narrow to accommodate german influences. This paper concludes that Knight's legacies have left much to be appreciated by neoclassical mainstream economists in general and Austrian economists in particular.


Social Economic Austrian Economic Austrian School Neoclassical Economic Chicago School 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Association for Social Economics 2002

Authors and Affiliations

  • Tony Fu-Lai Yu
    • 1
  1. 1.University of New South Wales (ADFA)Australia

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