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60 sats \ 1 reply \ @Undisciplined 12 Dec \ parent \ on: What Modern Economists Can Learn from the Austrian School of Economics econ
Any serious economist knows that the homo economicus model is only a simplification of reality. Some Chicago types have gone overboard in believing it to be true, but they're outliers.
Austrians make simplifying assumptions, too. What I see as the important distinction is that Austrians are usually more aware of the significance of their assumptions and the assumptions are made for the purpose of clarification rather than tractability.
Often the simplification assumptions that Austrians make are, on a granular basis, not much different from the real case. But I guess you could say that for almost all simplifying assumtions.
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