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Austrian Methodology

The importance of The Austrian School of Economics may lie in its methodology as much as it does in its theories. Austrian economists have realized that the human systems studied in economic exhibit a level of complexity precludes theoretical understanding from empirical evidence alone. Thus, we must develop and test economic theories based on the use of fundamental principles or axioms and the application of deductive reasoning.

Praxeology
The science or general theory of (conscious or purposeful) human action. (See description in Economic Theories.)
Deductive Reasoning
Deductive reasoning, used in the Austrian Methodology, leads from true principles (or axioms) to true conclusions. (See description in Deductive Reasoning.)
 

 

Ludwig von Mises

Lugwig von Mises
The father of modern Austrian School of Economics.

 

Austrian School