Austrian Business Cycles Theory and Equilibrium Business Cycles Theory

Théorie autrichienne du cycle et théorie des cycles d'équilibre

Christelle Mougeot
Additional contact information
Christelle Mougeot: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: According to Lucas' equilibrium business cycle theory, cycles are not the result of market failure but due to unavoidable errors on the part of optimizing agents. This approach is built on pre-war theories. Because misleading price signals are the catalysts of cyclical fluctuations, which means that individual behaviour is fundamental to explain aggregated phenomena, Lucas' equilibrium business cycle theory is called « neo-austrian » economics. But these Austrian roots are controversial. This article shows that concepts - equilibrium, expectations and information -, methods - structural analysis versus procedural and historical analysis - and research programs - forecasting versus coordination - fundamentally divide Lucas and Hayek.

Date: 2009-12-01
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Revue Française d'Economie, 2009, 24 (4), pp.67-92. ⟨10.3917/rfe.094.0067⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03777072

DOI: 10.3917/rfe.094.0067

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().