Vol. 21, Issue 4, 2018

Photo by AbsolutVision on Unsplash

In this issue: Follert, Herbener, Olbrich, and Rapp look at the role of negotiations in valuing businesses, and Karl-Friedrich Israel discusses how Austrians see the income effect. Block, Engelhardt, and Herbener discuss the possibility that credit expansion in one part of the world could create adverse effects in a laissez-faire economy. Wysocki and Block defend Austrian subjectivism against a critique centered on homogeneity of goods. Book reviews cover Ulrich Hintze’s Theoria Generalis, Per Bylund’s The Problem of Production, and John Cogan’s The High Cost of Good Intentions: A History of U.S. Federal Entitlement Programs.

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Articles
Agree or Disagree? On the Role of Negotiations for the Valuation of Business Enterprises
Florian FollertJeffrey HerbenerMichael OlbrichDavid Rapp
Valuation of businesses must be based on appraisement, investment appraisal, and—terra incognita in Austrian economics—negotiation. Discounted cash flow and "relative valuation" methods are well-suited for negotiation purposes.
Articles
Is the Virus of International Macroeconomic Interventionism Infectious? An ABCT Analysis
Walter BlockLucas EngelhardtJeffrey Herbener
Can credit expansion in one part of the world infect a laissez-faire economy with a boom-bust cycle? Block, Engelhardt, and Herbener argue that the laissez-faire economy is largely sheltered.
Articles
The Income Effect Reconsidered
Karl-Friedrich Israel
There is a type of income effect in Austrian or causal-realist price theory, and the difference between neoclassical and Austrian microeconomics is smaller than has been portrayed, says Karl-Friedrich Israel.
Articles
Homogeneity, Heterogeneity, the Supply Curve, and Consumer Theory
Igor WysockiWalter Block
What does it mean for two goods to be the "same good"? Wysocki and Block argue that Austrian subjectivism leads to the possibility of perfect economic homogeneity or heterogeneity.
Book Reviews
Review of Ulrich Hintze, Theoria Generalis: Das Wisen des Politischen
Paul Gottfried
In his massive work, Hintze uses Mises extensively to create a theory of the state and attacks anarcho-capitalism. He suggests local government, arguing that modern liberal democracies have failed.
Book Reviews
Review of Cogan, The High Cost of Good Intentions: A History of U.S. Federal Entitlement Programs
Mark Thornton
Mark Thornton reviews John Cogan's history of failed entitlement programs in the US, from veterans' benefits of the War for Independence to today's damaging but inexorably expanding welfare programs.
Book Reviews
Review of Per Bylund, The Problem of Production: A New Theory of the Firm
Mateusz Machaj
Per Bylund's new book makes a compelling Austrian argument that firms precede markets, and creates what reviewer Mateusz Machaj calls "an unlocking theory of the firm."

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