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The Review of Austrian Economics

, Volume 21, Issue 4, pp 225–249 | Cite as

Advancing economic analysis beyond the equilibrium framework

  • Randall G. Holcombe
Article

Abstract

Twentieth century economics was dominated by the development and refinement of the concept of economic equilibrium. While it is worthwhile to understand the properties of economic equilibrium, equilibrium concepts have dominated economic thought to the point that they have obscured some of the more important issues economists have always strived to understand. At least since Adam Smith’s time, economists have tried to understand the causes of prosperity, and how economic welfare can be enhanced, but these issues are best understood outside the equilibrium framework. The foundations provided by the Austrian school point toward ways that economic analysis can expand beyond the equilibrium framework.

Keywords

Economic growth Equilibrium Prosperity Economic welfare 

JEL codes

B250—History of Thought since 1925: Historical Institutional Evolutionary Austrian, B530—Current Heterodox Approaches: Austrian, O400—Economic Growth and Aggregate Productivity: General 

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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Department of EconomicsFlorida State UniversityTallahasseeUSA

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