Toward a More Relevant Theory of Economic Expansion and Development: Insights from Ludwig von Mises
DOI:
https://doi.org/10.52195/pm.v16i2.22Abstract
The history of modern growth theory can be characterized as a run- ning debate between capital fundamentalism and technological fundamental- ism. Both sides of the debate rely on mathematical models that suffer from problems of aggregation and serious limitations due to their assumptions. The economic framework and insights of Ludwig von Mises provide theoretical results pointing to a more robust and relevant theory of economic progress. Mises’ emphasis on the market division of labor, capital formation, innovation, and entrepreneurship allow for the development of a more holistic theory of economic expansion and development that, therefore, is more likely to provide helpful policy guidance for purposes of economic progress.
Keywords: Economic growth, Economic development, Entrepreneurship, Eco- nomic Institutions.
JEL classification: O11, O40, L26, D24, O33, B25, B53.
Resumen: La historia de la teoría moderna del crecimiento puede caracteri- zarse como un debate continuo entre el fundamentalismo capital y el funda- mentalismo tecnológico. Ambas partes del debate se basan en modelos matemáticos que sufren problemas de agregación y serias limitaciones debido a sus suposiciones. El marco económico y las ideas de Ludwig von Mises pro- porcionan resultados teóricos que apuntan a una teoría más sólida y relevante del progreso económico. El énfasis de Mises en la división de mercado del tra- bajo, la formación de capital, la innovación y el emprendimiento permiten el desarrollo de una teoría más holística de expansión y desarrollo económico que, por lo tanto, es más probable que proporcione una orientación política útil para los fines del progreso económico.
Palabras clave: Crecimiento económico, Desarrollo económico, Emprendi- miento, Instituciones Económicas.
Clasificación JEL: O11, O40, L26, D24, O33, B25, B53.
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