Hello. I have heard that there is some division in the Austrian School between those who follow Hayek and those who follow Mises and Rothbard. I understand the obvious philosophical/political differences between F.A. Hayek and Rothbard, but what are their economic differences, whether methodological or other? I believe someone said Hayek is much more in-line with the Chicago School, than Rothbard and Mises, but what economic work has Hayek done that would validate this statement?
You should have a look at these articles:
The major differences between them is that Hayek was not a strict praxeologist, and that he viewed the main function of price as means of conveying information, while for Mises its main function is in respect to rational calculation.
“he viewed the main function of price as means of conveying information, while for Mises its main function is in respect to rational calculation.”
This is confusing because it seems that those are just 2 ways of saying the same thing.
Also check out Chapter 8: Socialism: A Property or Knowledge Problem? of Economics and Ethics of Private Property. Hoppe argues about the differences between Hayek’s and Mises’ crititcisms of Socialism
Do you think this makes sense?
Hayek: The market is “a means for disseminating the knowledge which systematically guides decentralized and initially ignorant decision-makers toward a full, ex ante coordination of their various production and consumption plans.” (Salerno)
Mises: Input (present/past price) can be compared against expected output (future price) so as to assign an expected ex post as well as - and more importantly - an actual ex post cardinal unit to the difference between input/output.
It seems that for Hayek the “current” (immediately past) price guides future action through the information it disseminates. For Mises, past price functions only as the input of ex post calculation/appraisement. If anyone believes I’m wrong on this, please let me know.
+1
I gave a more detailed response about what I meant - any more to say than just “+1”? The two really were not the same on this issue.
Rothbard is my favorite because Hayek is a statist.