Could anyone inform me to what extent Jevons was an Austrian? There’s a strange remark in MES that implies that he was one, and in Wicksteed’s biography on the Mises site he is again referred to as a British “Austrian”. Can anyone clarify? What about Schumpeter? He is interchangeably referred to as an Austrian and a classical economist. Well which is it? To what extent was he an Austrian? Could he be classified as one?
-Jon
From reading your posts throughout the website, it’s clear to me that you are much more knowledgeable than I am about Austrian economics, but for whatever it’s worth, here’s what I can tell you about what you’ve asked.
Jevons (along with Menger and Walras) was one of the three individuals who simultaneously discovered the theory of marginal utility. However, Jevons and Walras both had backgrounds in the natural sciences and therefore their conceptions of economics were highly mathematical. They did not, like Menger, develop the cogent, distinct conception of economics that would come to be known as the Austrian School. So, although Jevons was a key figure in the marginalist revolution (which the Austrian School was born out of), I can’t see how he could be considered an Austrian.
Schumpeter, while fully familiar with the Austrian school (he studied under Böhm-Bawerk at the University of Vienna) and sympathetic to some Austrian viewpoints (he championed the entreprenuer), was not a devotee of the school either. There seems to be some confusion about him due to the fact that he was born in Austria-Hungary. For instance, in Paul Krugman’s (pathetic) 1998 slate.com article “The Hangover Theory.” he mistakenly claims that Schumpeter was a proponent of the ABCT. Schumpeter was from Austria, and he did have a business cycle theory, but he was not a member of the Austrian School. (In case you’re interested, here’s David Gordon’s review of Krugman’s article.) While Schumpeter was a supporter of capitalism and a classical liberal, his business cycle theory was radically different from that of the Austrian school. In fact, the sequence of his cycle (bust-boom) is the opposite of the Austrian sequence (boom-bust), and the cycle is brought about by very different factors.
You can find more on Jevons and Schumpeter in Mises: The Last Knight of Liberalism.
Schumpeter was, first and foremost, a Walrasian. He considered Walras the greatest economist ever. However, he was also heavily influenced by his mentor, Bohm-Bawerk (I think he ranked Bohm-Bawerk in the top six). As someone already pointed out, his nationality, as well as his schooling, indicates that he was a fellow traveler of the Austrian School.
Jevons personally thought of himself as a continuation of the French Liberal School, just as the Austrian School does. He actually wrote an introduction to Cantillon’s treatise. Jevons’ position on math, as well as his controversial sun-spot theory, put him at odds with the Austrian School. But his views on the French economists, subjective value, and marginal analysis suggest that he would have been sympathetic to Menger’s school.
I think one reason Jevons is considered to be an “Austrian” is because he developed a period of production theory of capital and interest (similar to Bohm-Bawerk, although Jevons’ work preceeds his). In fact, Jevons had figures in his works that are basically identical to the traingular diagrams used by Hayek in Prices and Production (which Hayek wanted to name “Jevonian Investment Figures” for that reason, but the name never caught on).
Although I noticed the connection with the triangles, I never knew about the term, “Jevonian Investment Figures.” Thanks, Sam! Where can I find a reference to that term? Hayek does seem to have liked Jevons; he mentioned him briefly in his autobiography in relation to Keynes. Keynes, by the way, also thought highly of Jevons.
I wouln’t know how to classify Jevons.
(At 14:30 and on)
http://www.youtube.com/user/Nielsio#p/u/17/NBf60Iue5nQ
In this video is why I wouldn’t consider Jevons a through-and-through austrian economist. I think the praxeological account in this case is vitally important for the school.
If I recall correctly Hayek mentions them in a footnote in *Prices and Production (*Right after introducing the triangles).
You are correct, Giant_Joe. Jevons cannot be described as an Austrian economist. I don’t think anyone meant to suggest that. Still, there are some similarities.
And thanks again for the info, Sam. Much appreciated. That book is staring at me right now from across the room.