Austrian School of Economics (3)

Praxeology is the main methodology used by Austrian economists which was first introduced by Mises as the methodology of human action. As said before methodology is one of the main conceptual and theoretical elements in the writings of Austrian theorists. There are various ways of looking at this problem. First there is the issue of conceptualizing the process of theory making within the context of the development of economic theories. Model development, Econometric analysis, and theoretical underpinning with in the interdisciplinary perspectives of the social sciences can be examples of this kind of theoretical approach. Now, praxeology within the context of economic development captures the interdisciplinary perspective of institutional adjustments and the categorization of such conceptual frameworks as a constitution or a set of laws based on a series of game theoretic formulas. So this type of methodology which captures the behavior of human action can best capture the classical liberal approach of analyzing an economic system or the market system based on a consistent and thought provoking set of ideas and models that formulate into a broader understanding of economic theory. This hence, places a bridge from economic development analysis to the whole conceptual framework of analyzing mainstream issues based on a consistent frameworks of ideas rather than a trial and error approach to modeling economic issues.