Abstract
In this chapter, I discuss an integrated version of entrepreneurship theory based on Jesús Huerta de Soto’s theory of dynamic efficiency (TDE) and the judgment-based approach (JBA) entrepreneurship theory. I point out that there are similarities and interconnections between the two views. Both of them emphasize the incentives that private property rights provide to the entrepreneurs and the characteristics of entrepreneurial decision-making under uncertainty. I also argue that creativity and coordination as dynamic efficiency go beyond the neoclassical economics’ resource allocation criteria under static and given conditions and correspond to the risks and uncertain environment that the entrepreneurs face, which Frank Knight and the JBA emphasize. Finally, I argue that the new theory will also provide unique elements to the Austrian theory of economic development.
I was admitted to Jesús Huerta de Soto’s master’s program and graduated in 2014. From 2015 to 2020, I was studying a doctoral degree in economics at the Complutense University of Madrid (UCM). My thesis was about China’s first modern central bank (1927–1949) from the Austrian monetary perspective (Wang, 2020). With the joint help of my thesis mentor Prof. Jose Luiz Garcia and Jesús, I graduated with cum laude.
Jesús Huerta de Soto’s enthusiasm for teaching inspired me. In an academic conference in 2016, due to my lack of confidence, I did not present any paper. Later, Jesús came to me, “William, you should also present your paper the next time. Don’t be afraid of making mistakes, because this conference is exactly for you young people!” From then on, I no longer have any fear of showing my academic achievements. Perhaps it is a coincidence of history. Both Jesús and I graduated with Ph.D. in Economics from the UCM. I hope the alma mater’s connections with Jesús are not just a coincidence but also a starting point for a young student from Asia to inherit his passion for economics and liberty.
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Notes
- 1.
Although Israel Kirzner (1966) does perceive the importance of capital in production, his alert-type entrepreneurs do not necessarily hold capital.
- 2.
Salerno considers efficiency as just economizing. “[E]nds and means are assumed as data given to the economic theorist and not to the economizing agent whose choices are the subject of analysis.” See Salerno (2009, p. 99).
- 3.
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Wang, W.H. (2023). Dynamic Efficiency and a Judgment-Based Approach to Entrepreneurship: An Integrated Thesis for Development Economics. In: Howden, D., Bagus, P. (eds) The Emergence of a Tradition: Essays in Honor of Jesús Huerta de Soto, Volume II. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-17418-6_10
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