What makes one an 'Austrian School' economist?

From watching videos, the main leaders of the school are considered:

Menger - > Bohm Bawerk → Mises and Hayek → Rothbard → ???

I gather that Menger set things in motion and Mises and Hayek represented a giant leap forward. Is one considered an Austrian based on how much of Mises and Hayek they agree with? What are the main viewpoints that would make one an Austrian economist? What things does one have to agree with to be Austrian? For example why is Scumpeter not considered part of the school?

How is new work integrated into the existing body of what is considered Austrian?

Since Rothberd what significant changes or improvements have there been?

Peter Boettke boils it down to 10 propositions here.

“Is one considered an Austrian based on how much of Mises and Hayek they agree with?”

No. One can still technically be an Austrian economist without actually agreeing with anything said by any austrian economist BEYOND methodological concerns. You will almost never find this, however, almost all casual Austrians are either Misesians or Rothbardians who almost always agree with what Hayek said but disagree with him in many major respects. There are many more, more learned Austrians who are in league with Hayek.

“What are the main viewpoints that would make one an Austrian economist?”

  1. The belief in methodological individualism

The idea that all societal behavior is the result of individual action and so in order to understand these events we must look to the individual

  1. The belief in the non-empirical nature of the social sciences

Man acts based upon his own experiences and value judgements. These will never be repeated

  1. Radical subjectivism

The only values are those which individuals assign to that which they percieve

All of these are essential to being an Austrian Economist

  1. Condemnation of non-market socialism on economic grounds (never met an Austrian who didn’t agree with this but it’s concievable)

  2. Support of the entrepreneur as the mover and shaker of the capitalist economy (once again exceedingly important)

  3. Support of free markets (almost always, finally at a point where there actually are a noteable number of austrian dissenters)

  4. Belief in inefficiency of almost all market interventions

  5. Belief in the view that credit expansion brings around the business cycle

  6. Emphasis on capital in analysis

  7. Contempt for the perfect competition model when applied to ‘real life’ and belief that the entire point of the market process is approaching the ideal price

  8. Belief in social libertarianism and pacifism (usually)

  9. Condemnation of Keynesian spending solutions to recessions as well as most monetarist solutions, instead favoring and adjustive approach

Those are most of the big ones that I can think of

“What things does one have to agree with to be Austrian?”

The first three viewpoints. Probably 90% of Austrians will agree with the first seven

“For example why is Scumpeter not considered part of the school?”

That’s one thing that I’ve never really understood myself. From reading his work I feel that it’s two things, the first and less important is that in his sociological work he was fairly collectivistic (although in his actual economic writings he was, of course, as individualistic as possible), and more importantly he put a lot of emphasis on empirical evidence claiming something along the lines of the fact that one could not discount something which had to do with the past, or so I recall.

“How is new work integrated into the existing body of what is considered Austrian?”

The same way it is almost all other schools, through the formulation of theories in books and the like and then general concensus by peers.

“Since Rothberd what significant changes or improvements have there been?”

Most unfortunately little has really been done to expand the work of the austrians in terms of real economics or anything outside of moral theory, the possibilities for the continuation of a free society, and reinforcement of old theories since Rothbard died. The little work that actually has been performed has been by de Soto and some intruiging sociological work has been done by Hoppe.
Rothbard acted as a great synthesizer. There are places that Austrian theory still needs to go, but not as many as one might think after Rothbard came in and combined the work of a centuries worth of Austrian Economists.

I prefer to keep things simple. In my view, the set of views exposed by Mises comprises the source of – and/or the largest intersection with – all other Austrian “sets”. To me, the simplest, and most likely the most accurate, distillation of Austrianism would be: Ludwig von Mises.

This isn’t a simple question. Some say it’s methodology and praxeology which makes one an Austrian, some say it’s just supporting calculation argument by Mises & free market society proposed by Hayek.

And about Rothbard, we all should remember that he is classified as an important figure only by people in Mises Institute and it’s followers. When Austrian school is talked in mainstream, only Haeyk and maybe Mises are brought up. Some branches of more moderate Austrians, like Hayekians, regard Rothbard just as a ‘secondary’ Austrian, like Kirzner and others. And if we go off from the Austrian to the other libertarian schools, many actually hate Rothbard.

Should not the “true” Austrian economist be an anarchist? I know that Hayek was a way from it, and only Rothbard, as far as I know, defined himself as anarchist. But Austrian school critic of government interventionism proves the State to be useless institution at best, which leads one to a kind of minarchism, which I believe to be an intermediate stage before converting to anarcho-capitalism.

There’s also quite a bit of resources in the links section on the Austrian School article at the Mises Wiki…

Check here.

Absolutely not. Economics is value free.

Schumpeter was clearly a Walrasian rather than a Mengerian Austrian.

I would also argue that the economic theory of Hayek is very different to that of Mises, e.g. the former emphasises the role of past prices in conveying information to entrepreneurs, while the latter emphasises the role of calculation in forecasting future profits - these are significantly different views of the market process. I think the closest followers of Hayek today are the Neo-Institutionalist economists rather than the Austrians, who are generally followers of Mises. There is obviously a great overlap between both schools.

Absolutely not. Economics is value free.

But once you show that taxes create inefficiencies, and the state is supported by taxes, wouldn’t you argue that market anarchy would create a better distribution of resources?

I still see that arising from an economics side and not a political one, as your decision is influence by econ theory not political theory. May it sway or change a political stance? Sure, but it’s not a political stance in itself.

“But once you show that taxes create inefficiencies, and the state is supported by taxes, wouldn’t you argue that market anarchy would create a better distribution of resources?”

You can still be a totalitarian, etc.

Boetteke offers some sage words from Ludwig Lachmann:

http://austrianeconomists.typepad.com/weblog/2007/03/wisdom_from_lud.html

And speaking of Lachmann the 1st part of his amazing lecture gives a pretty good picture as to what an Austrian Economist is - as do some of his answers at the Q and A at the end of the lecture:

http://www.youtube.com/watch?v=QdymByxT1Gg

Peter Boettke boils it down to 10 propositions here.

Wow, looks as if I wasn’t the only one to cite Boetteke. Good article