Advertisement

The Review of Austrian Economics

, Volume 26, Issue 2, pp 149–170 | Cite as

The Freiburg school and the Hayekian challenge

  • Michael Wohlgemuth
Article

Abstract

At first sight and in terms of explicit references, the relationship between Hayek and the early Freiburg School seems to have been one of mutually benign neglect. It took several decades before the “Hayekian challenge” was fully understood in Freiburg; in a way one could even argue that the challenge arrived in Freiburg only with Hayek himself in 1962. This delay can mostly be explained by different foci of attention. Hayek’s evolutionary economics and his classical-liberal social philosophy centers around the problem of private, dispersed knowledge. The (early) Freiburg School’s economics and its ordo-liberal social philosophy centers around the problem of private, concentrated power. This difference of perspective has consequences and can partly be explained by the different intellectual sources the proponents were drawing upon, and the different political struggles they were engaged in.

Keywords

Friedrich A. von Hayek Freiburg School Neo-liberalism Austrian Economics 

JEL

A11 B25 B53 H10 P11 

References

  1. Arrow, K. J. (1974). Limited Knowledge and Economic Analysis. American Economic Review, 64, 1–10.Google Scholar
  2. Boettke, P. J., & Leeson, P. T. (2003). The Austrian School of Economics, 1950–2000. In W. J. Samuels, J. Biddle, & J. B. Davis (Eds.), A Companion to the History of Economic Thought (pp. 445–453). Oxord: Blackwell.CrossRefGoogle Scholar
  3. Böhm, F. (1937). Die Ordnung der Wirtschaft als geschichtliche Aufgabe und rechtsschöpferische Leistung. Stuttgart, Berlin: Kohlhammer.Google Scholar
  4. Böhm, F. (1950). Die Idee des ORDO im Denken Walter Euckens - Dem Freunde und Mitherausgeber zum Gedächtnis”. Ordo, 3, xv–lxiv.Google Scholar
  5. Böhm, F. (1953/60). Der Rechtsstaat und der soziale Wohlfahrtsstaat, in his: Reden und Schriften (pp. 82–156). Karlsruhe: Müller.Google Scholar
  6. Böhm, F. (1957/60). Die Forschungs- und Lehrgemeinschaft zwischen Juristen und Volkswirten an der Universität Freiburg in den dreißiger und vierziger Jahren des 20. Jahrhunderts, in his: Reden und Schriften (pp. 158–175). Karlsruhe: Müller.Google Scholar
  7. Böhm, F. (1966). Privatrechtsgesellschaft und Marktwirtschaft. ORDO, 17, 75–151.Google Scholar
  8. Böhm, F. (1966/89). Rule of Law in a Market Economy. In A. Peacock & H. Willgerodt (Eds.), Germany’s Social Market Economy: Origins and Evolution (pp. 46–67). London: MacMillan.Google Scholar
  9. Böhm, F., Eucken, W., & Grossmann-Doerth, H. (1936/89). The Ordo Manifesto of 1936. In A. Peacock & H. Willgerodt (Eds.), Germany’s Social Market Economy: Origins and Evolution (pp. 15–26). London: MacMillan.Google Scholar
  10. Caldwell, B. (1997). Hayek and Socialism. Journal of Economic Literature, XXXV, 1856–1890.Google Scholar
  11. Caldwell, B. (2004). Hayek’s Challenge. An Intellectual Biography of F.A. Hayek. Chicago: University of Chicago Press.Google Scholar
  12. Colombatto, E. (2004). Hayek and Economic Policy (The Austrian Road to the Third Way). Turin: International Centre for Economic Research, Working Paper 17/2004.Google Scholar
  13. Commun, P. (2003). La conversion de Ludwig Erhard à l’ordolibéralisme. In P. Commun (Ed.), L’Ordolibéralisme Allemand. Aux sources de l’économie sociale de marché (pp. 175–199). Cergy-Pontoise: CIRAC/CICC.Google Scholar
  14. Commun, P. (2006). Introduction. Les libéralismes allemands. In P. Nemo & J. Petitot (Eds.), Histoire du libéralisme en Europe (pp. 829–857). Paris: Presses Universitaire de France.Google Scholar
  15. Demsetz, H. (1969). Information and Efficiency: Another Viewpoint. The Journal of Law and Economics, 12, 1–22.CrossRefGoogle Scholar
  16. Eucken, W. (1932). Staatliche Strukturwandlungen und die Krisis des Kapitalismus. Weltwirtschaftliches Archiv, 84, 297–331.Google Scholar
  17. Eucken, W. (1940/50). The Foundations of Economics. History and Theory in the Analysis of Economic Reality. London: William Hodge.Google Scholar
  18. Eucken. (1948/89). What Kind of Economic and Social System? In A. Peacock & H. Willgerodt (Eds.), Germany’s Social Market Economy: Origins and Evolution (pp. 27–45). London: MacMillan.Google Scholar
  19. Eucken, W. (1949). Die Wettbewerbsordnung und ihre Verwirklichung. Ordo, 2, 1–99.Google Scholar
  20. Eucken, W. (1951/52). This Unsuccessful Age - or The Pains of Economic Progress. Oxford: Oxford University Press.Google Scholar
  21. Eucken, W. (1952/90). Grundsätze der Wirtschaftspolitik, 6th edition. Tübingen: Mohr Siebeck.Google Scholar
  22. Goldschmidt, Nils (2012): Walter Eucken’s Place in the History of Ideas, in this volume of the Review of Austrian Economics.Google Scholar
  23. Goldschmidt, N., & Wohlgemuth, M. (2007). Grundtexte zur Freiburger Tradition der Ordnungsökonomik. Tübingen: Mohr Siebeck.Google Scholar
  24. Grossekettler, H. G. (1989). On Designing an Economic Order. The Contributions of the Freiburg School. In D. A. Walker (Ed.), Twentieth Century Economic Thought (Vol. 2, pp. 38–84). Aldershot: Elgar.Google Scholar
  25. Hagemann, H. (2001). The Verein für Sozialpolitik from its foundation (1872) until World War I. In M. A. Massimo & M. E. L. Guidi (Eds.), The Spread of Political Economy and the Professionalisation of Economists (pp. 152–175). London: Routledge.Google Scholar
  26. Häuser, K. (1988). Historical School and “Methodenstreit”. Journal of Institutional and Theoretical Economics, 144, 532–542.Google Scholar
  27. Hayek, F. A. (1935). Socialist Calculation: The Nature and History of the Problem, in his (ed.): Collectivist Economic Planning - Critical Studies on the Possibilities of Socialism. London: Routledge.Google Scholar
  28. Hayek, F. A. (1937/48). Economics and Knowledge, in his: Individualism and Economic Order (pp. 33–58). Chicago: University of Chicago Press.Google Scholar
  29. Hayek, F. A. (1940/94). Socialist Calculation III: The Competitive ‘Solution. In I. Kirzner (Ed.), Classics in Austrian Economics - A Sampling in the History of a Tradition, Vol. III: The Age of Mises and Hayek (pp. 235–257). London: William Pickering.Google Scholar
  30. Hayek, F. A. (1944). The Road to Serfdom. Chicago: University of Chicago Press.Google Scholar
  31. Hayek, F. A. (1945). The Use of Knowledge in Society. American Economic Review, 35, 519–530.Google Scholar
  32. Hayek, F. A. (1945/48). Individualism: True and False, in his: Individualism and Economic Order (pp. 1–32). Chicago: University of Chicago Press.Google Scholar
  33. Hayek, F. A. (1948). ‘Free’ Enterprise and Competitive Order, in his: Individualism and Economic Order (pp. 107–118). Chicago: University of Chicago Press.Google Scholar
  34. Hayek, F. A. (1951/67). The Transmission of the Ideals of Economic Freedom, in his Studies in Philosophy, Politics and Economics (pp. 195–200). Chicago: University of Chicago Press.Google Scholar
  35. Hayek, F. A. (1953). Entstehung und Verfall des Rechtsstaatsideales. In A. Hunold (Ed.), Wirtschaft ohne Wunder. Rentsch: Erlenbach-Zürich.Google Scholar
  36. Hayek, F. A. (1957/67). What is ‘Social’ - What Does it Mean? in his Studies in Philosophy, Politics and Economics (pp. 237–247). Chicago: University of Chicago Press.Google Scholar
  37. Hayek, F. A. (1960). The Constitution of Liberty. Chicago: University of Chicago Press.Google Scholar
  38. Hayek, F. A. (1962/67). The Economy, Science, and Politics, in his Studies in Philosophy, Politics and Economics (pp. 251–269). Chicago: University of Chicago Press.Google Scholar
  39. Hayek, F. A. (1965/67). Kinds of Rationalism, in his Studies in Philosophy, Politics and Economics (pp. 82–95). Chicago: University of Chicago Press.Google Scholar
  40. Hayek, F. A. (1967). The Results of Human Action but not of Human Design, in his: Studies in Philosophy, Politics and Economics (pp. 96–105). Chicago: University of Chicago Press.Google Scholar
  41. Hayek, F. A. (1967/78). The Confusion of Language in Political Thought, in his: New Studies in Philosophy, Politics, Economics and the History of Ideas (pp. 71–97). London: Routledge.Google Scholar
  42. Hayek, F. A. (1968/78). Competition as a Discovery Procedure, in his: New Studies in Philosophy, Politics, Economics and the History of Ideas. London: Routledge.Google Scholar
  43. Hayek, F. A. (1973/1976/1979). Law, Legislation, and Liberty, 3 vols. Chicago: University of Chicago Press.Google Scholar
  44. Hayek, F. A. (1978a). The Atavism of Social Justice, in his: New Studies in Philosophy, Politics, Economics and the History of Ideas (pp. 57–68). London: Routledge.CrossRefGoogle Scholar
  45. Hayek, F. A. (1978b). Liberalism, in his: New Studies in Philosophy, Politics, Economics and the History of Ideas (pp. 119–151). London: Routledge.CrossRefGoogle Scholar
  46. Hayek, F. A. (1983/92). The Rediscovery of Freedom: Personal Recollections. In P. G. Klein (Ed.), The Collected Works of F.A. Hayek, Vol. IV - The Fortunes of Liberalism - Essays on Austrian Economics and the Ideal of Freedom (pp. 185–200). Chicago: University of Chicago Press.Google Scholar
  47. Hayek, F. A. (1988). The Fatal Conceit - The Errors of Socialism. London: Routledge.CrossRefGoogle Scholar
  48. Hayek, Friedrich A. (1994): Hayek on Hayek - An Autobiographical Dialogue, edited by S. Kresge and L. Wenar, London: Routledge.Google Scholar
  49. Hennis, W. (1994). ‘Die volle Nüchternheit des Urteils’. Max Weber zwischen Carl Menger und Gustav von Schmoller. Zum hochschulpolitischen Hintergrund des Werturteilspostulats. In G. Wagner & H. Zipprian (Eds.), Max Webers Wissenschaftslehre. Interpretation und Kritik (pp. 105–145). Suhrkamp: Frankfurt a.M.Google Scholar
  50. Hoppe, H.-H. (1994). F.A. Hayek on Government and Social Evolution: A Critique. In C. Frei & R. Nef (Eds.), Contending with Hayek. On Liberalism, Spontaneous Order and the Post-Communist Societies in Transition (pp. 127–159). Bern: Peter Lang.Google Scholar
  51. Hoppmann, E. (1988). Wirtschaftsordnung und Wettbewerb. Baden-Baden: Nomos.Google Scholar
  52. Kerber, W. (1994). German market process theory. In P. J. Boettke (Ed.), The Elgar Companion to Austrian Public Choice (pp. 500–507). Cheltenham: Edward Elgar.Google Scholar
  53. Kersting, W. (2000). Theorien der sozialen Gerechtigkeit. Stuttgart: JB Metzler.Google Scholar
  54. Kirzner, I. M. (1973). Competition and Entrepreneurship. Chicago: University of Chicago Press.Google Scholar
  55. Kurz, H. D. (1989). Die deutsche Nationalökonomie zu Beginn des 20. Jahrhunderts zwischen Klassik und Neoklassik. In B. Schefold (Ed.), Studien zur Entwicklung der ökonomischen Theorie VIII (pp. 11–61). Berlin: Dunker & Humblot.Google Scholar
  56. Lachmann, L. M. (1986). The Market as an Economic Process. Oxford: Basil Blackwell.Google Scholar
  57. Lange, O. (1965/94). The Computer and the Market. In T. Kowalik (Ed.), Economic Theory and Market Socialism: Selected Essays of Oskar Lange. Aldershot: Elgar.Google Scholar
  58. Lavoie, D. (1985). Rivalry and Central Planning: The Socialist Calculation Debate Reconsidered. Cambridge: Cambridge University Press.Google Scholar
  59. Miksch, L. (1937). Wettbewerb als Aufgabe. Die Grundsätze einer Wettbewerbsordnung. Stuttgart, Berlin: Kohlhammer.Google Scholar
  60. Miksch, L. (1949). Die Wirtschaftspolitik des Als-Ob. Zeitschrift für die gesamte Staatswissenschaft, 105, 310–338.Google Scholar
  61. Nock, A. J. (1973). Our Enemy the State. New York: Free Life Editions.Google Scholar
  62. Popper, K. R. (1945). The Open Society and its Enemies. London: Routledge.Google Scholar
  63. Raico, R. (1994). Classical liberalism and the Austrian school. In P. Boettke (Ed.), The Elgar Companion to Austrian Public Choice (pp. 320–327). Cheltenham: Edward Elgar.Google Scholar
  64. Sally, R. (1996). Ordoliberalism and the Social Market: Classical Political Economy from Germany. New Political Economy, 1, 233–257.CrossRefGoogle Scholar
  65. Sally, R. (1998). Classical Liberalism and International Economic Order. London: Routledge.Google Scholar
  66. Schefold, B. (1996). The German Historical School and the Belief in Ethical Progress. In F. N. Brady (Ed.), Ethical Universals in International Business (pp. 173–196). Berlin: Springer.CrossRefGoogle Scholar
  67. Schumpeter, J. A. (1942/87). Capitalism, Socialism and Democracy. London: Unwin Paperbacks.Google Scholar
  68. Schumpeter, J. A. (1954). History of Economic Analysis. London: Allen & Unwin.Google Scholar
  69. Shionoya, Y. (2000). Joseph Schumpeter and the German Historical School. In P. Koslowski (Ed.), The Theory of Capitalism in the German Economic Tradition: Historism, Ordo-Liberalism, Critical Theory, Solidarism (pp. 3–23). Berlin: Springer.Google Scholar
  70. Speck, D. (ed., 2007). Uniseum Freiburg. Ein Bildbegleitbuch. Freiburg: Promo.Google Scholar
  71. Streit, M. E. (1987). Economic Order and Public Policy – Market, Constitution and the Welfare State. In R. Pething & U. Schlieper (Eds.), Efficiency, Institutions, and Economic Policy (pp. 1–21). Berlin: Springer.CrossRefGoogle Scholar
  72. Streit, M. E. (1992). Economic Order, Private Law and Public Policy: The Freiburg School of Law and Economics in Perspective. Journal of Institutional and Theoretical Economics, 148, 675–704.Google Scholar
  73. Streit, M. E. (1993). Cognition, Competition, and Catallaxy - In Memory of Friedrich August von Hayek. Constitutional Political Economy, 4, 223–262.CrossRefGoogle Scholar
  74. Streit, M. E. (1998). Competition Among Systems, Harmonisation and Integration. Journal des Economistes et des Etudes Humaines, 8, 239–254.Google Scholar
  75. Streit, M. E., & Wegner, G. (1992). Information, Transactions, and Catallaxy: Reflections on some Key Concepts of Evolutionary Market Theory. In U. Witt (Ed.), Explaining Process and Change – Approaches to Evolutionary Economics (pp. 125–149). Ann Arbor: University of Michigan Press.Google Scholar
  76. Streit, M. E., & Wohlgemuth, M. (2000). The Market Economy and the State. Hayekian and Ordoliberal Conceptions. In P. Koslowski (Ed.), The Theory of Capitalism in the German Economic Tradition: Historism, Ordo-Liberalism, Critical Theory, Solidarism (pp. 224–271). Berlin: Springer.Google Scholar
  77. Vanberg, V. (1975). Die zwei Soziologien - Individualismus und Kollektivismus in der Sozialtheorie. Tübingen: Mohr Siebeck.Google Scholar
  78. Vanberg, V. (1986). Spontaneous Market Order and Social Rules: A Critical Examination of F.A. Hayek’s Theory of Cultural Evolution. Economics and Philosophy, 2, 75–100.CrossRefGoogle Scholar
  79. Vanberg, V. (1988). Ordnungstheorie’ as Constitutional Economics. The German Conception of a ‘Social Market Economy. ORDO, 39, 17–32.Google Scholar
  80. Vanberg. (1994). Rules and Choice in Economics. London and New York: Routledge.CrossRefGoogle Scholar
  81. Vanberg, V. (1999). Markets and Regulation: On the Contrast Between Free-Market Liberalism and Constitutional Liberalism. Constitutional Political Economy, 10, 219–243.CrossRefGoogle Scholar
  82. Vanberg, V. (2003). F.A. Hayek und die Freiburger Schule. ORDO, 54, 3–20.Google Scholar
  83. Vanberg, V. (2004). Austrian Economics, Evolutionary Psychology, and Methodological Dualism: Subjectivism Reconsidered, in: Roger Koppl (ed.): Evolutionary Psychology and Economic Theory = Advances in Austrian Economics, Vol.7, 155-199.Google Scholar
  84. Vanberg, V. (2007). The Freiburg School: Walter Eucken and Ordoliberalism, paper presented at the 34th Annual Meeting of the History of Economics Society, Fairfay, VA, 8-11 June 2007.Google Scholar
  85. Wagener, H.-J. (2001). Ordnungstheorie and Theory of Regulation: How Productive Are They? A Virtual Panel Discussion. In A. Labrousse & J.-D. Weisz (Eds.), Institutional Economics in France and Germany. German Ordoliberalism versus the French Regulation School (pp. 349–370). Berlin: Springer.CrossRefGoogle Scholar
  86. Weber, M. (1920/2005). Wirtschaft und Gesellschaft. Tübingen: Mohr Siebeck.Google Scholar
  87. Wohlgemuth, M. (1997). Has John Roemer Resurrected Market Socialism?, The Independent Review II (2), 201-224.Google Scholar
  88. Wohlgemuth, M. (2006). L’influence de l’économie autrichienne sur le libéralisme allemand. In P. Nemo & J. Petitot (Eds.), Histoire du libéralisme en Europe (pp. 985–1030). Paris: Presses Universitaire de France.Google Scholar
  89. Zintl, R. (1983). Individualistische Theorien und die Ordnung der Gesellschaft. Untersuchungen zur politischen Theorie von J. M. Buchanan und F. A. v. Hayek. Berlin: Duncker und Humblot.Google Scholar
  90. Zweynert, J. (2013): How German is German Neo-Liberalism?, Review of Austrian Economics. doi: 10.1007/s11138-013-0220-1

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Open Europe BerlinBerlinGermany
  2. 2.University of Witten/HerdeckeWittenGermany

Personalised recommendations