The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Böhm-Bawerk, Eugen von (1851–1914)

  • K. H. Hennings
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_461

Abstract

As civil servant and economic theorist, Böhm-Bawerk was one of the most influential economists of his generation. A leading member of the Austrian School, he was one of the main propagators of neoclassical economic theory and did much to help it attain its dominance over classical economic theory. His name is primarily associated with the Austrian theory of capital and a particular theory of interest. But his prime achievement is the formulation of an intertemporal theory of value which, when applied to an exchange economy with production using durable capital goods, yields a theory of capital, a theory of interest, and indeed a theory of distribution in which the time element plays a crucial role. Both this construction and his equally famous critique of Marx’s economics strongly influenced the development of economic theory from the 1880s until well into the 1930s.

Keywords

Austrian economics Austrian school Austrian theory of capital Böhm-Bawerk, E. von Capital deepening Capital theory Classical economics Distribution theory Exploitation Fisher I. Goods theory Imputation Interest theory Intertemporal exchange Intertemporal preferences Intertemporal theory of value Inverse demand schedules Knies, K. G. A. Labour theory of value Marginal productivity theory Market power Market rate of interest Marxian economics Menger, C. Neoclassical economics Price formation Roundabout methods of production Schäffle, A. E. F. Shadow pricing Stationary state Subjective rates of interest Subsistence fund Time Time preference Wicksell effects Wicksell, J. G. K. 

JEL Classifications

B31 
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Bibliographic Addendum

  1. Hennings, K. The Austrian theory of value and capital: Studies in the life and work of Eugen von Böhm-Bawerk. Cheltenham: Edward Elgar, 1997, is a detailed account.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • K. H. Hennings
    • 1
  1. 1.