Austrian economics at the cutting edge

Research output: Contribution to journalReview articlepeer-review

47 Scopus citations


Austrian economists today have a valuable opportunity to rejoin the mainstream of the economics profession. As Colander, Holt, and Rosser have argued, neoclassical orthodoxy is no long mainstream. What I call the "heterodox mainstream" is an emerging new orthodoxy. The five leading characteristics of the emerging new orthodoxy are bounded rationality, rule following, institutions, cognition, and evolution. When listed in this order, they suggest the acronym BRICE. The Austrian school is also an example of BRICE economics. The shared themes of BRICE economics create an opportunity for intellectual exchange between Austrians and other elements of the heterodox mainstream. Although Austrians should engage the heterodox mainstream energetically, they should also defend the essential elements of an early version of neoclassical economics, elements at risk of becoming half-forgotten themes of an earlier era. These elements are supply and demand, marginalist logic, opportunity-cost reasoning, and the elementary theory of markets.

Original languageEnglish (US)
Pages (from-to)231-241
Number of pages11
JournalReview of Austrian Economics
Issue number4
StatePublished - Dec 2006
Externally publishedYes


  • Austrian school
  • Heterodox mainstream
  • Neoclassical economics

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance


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