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44 DULBECCO AND GARROUSTE production and capital: Bohm-Ba ¨ werk (1889), Hayek (1931, 1939, 1941) Hicks (1970, 1973), Lachmann (1956, 1977). Yet, taking the production structure into account in the analysis of the coordination of economic activities goes hand in hand with the knowledge, that economic agents already possess concerning these very structures. When criticizing the Smithian explanation of economic progress, Menger considers that it results from the increase in knowledge that individuals possess, concerning the relationship between their needs and the well-ordered set of economic goods. Similarly, according to Bohm-Ba ¨ werk, production roundabouts are a direct reflection of human knowledge. Thus, two phenomena are interwoven. On the one hand, sets of spatial and temporal interdependencies exist, which restrict the decisions of the entrepreneurs, while on the other hand, the entrepreneurs must acquire the knowledge of these constraints in order, if possible, to modify them. We are, hence, facing a process characterized by the fact that the individuals’ knowledge of the constraints, as regards the layout of economic activities, affect these constraints, because of the decisions the individuals make. The object of our paper is, therefore, to fuse in the same analytical framework, the Austrian contribution regarding the
The Review of Austrian Economics – Springer Journals
Published: Oct 6, 2004
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