Action theory and economic analysis in Scholastic and Austrian thought

Abstract

The problem of interpreting standard economic analysis can be aided by the Scholastic and Austrian schools. The historical ties between Scholastic action theory and Austrian economic thought are deeper than mere affinities. The former seems to be a good ground for the latter to find its roots and flourish in traditional economic theory. A proper understanding of the relations between the will, the intellect, and the world establishes the a priori structure of economic theory. This theory can be understood as the intelligible form of economic activity, which provides ground for a methodology focused on the use of this structure in interpreting economic data. These relations derive not from folk psychology or analytic construction, but from an ontological view of acting persons. By providing a metaphysical ground for economic methodology, we show that natural and social sciences are not cut off from each other in separate worlds but are unified.