Toward a Praxeological Theory of the Firm

Toward a Praxeological Theory of the Firm 26 YU facilitating communications. In short, the firm is a social world constructed for the purpose of coordination (Section 1). The firm in which production takes place has a capital structure, just as the whole economy does. The employment of capital resources is associated with the agent’s production plans, knowledge and expectations. Given the heterogeneity and multiple specificity of capital goods, capital resources are combined in such a way as the entrepreneur perceives to be most profitable. A meaningful capital structure implies that these plans must be consistent with each other. Plans which are inconsistent with either the consumer or the producer plans will be revised. Changes in circumstance will cause the disintegration of the capital combinations which the owner of the firm previously considered optimal (Section 2). The growth of the firm is critically dependent on entrepreneurial discovery. The firm expands as the entrepreneur explores or exploits profitable opportunities. As the firm grows, capital accumulation results in an increase in the number of production stages as capital combinations become more and more specialised. The increased number of stages is indica- tive of increased complexity, which, in turn, is indicative of an increase in the productivity of the firm. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Review of Austrian Economics Springer Journals

Toward a Praxeological Theory of the Firm

Loading next page...
 
/lp/springer_journal/toward-a-praxeological-theory-of-the-firm-rXAevD7TA8
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Economics; Public Finance; Political Science; History of Economic Thought/Methodology
ISSN
0889-3047
eISSN
1573-7128
D.O.I.
10.1023/A:1007709325383
Publisher site
See Article on Publisher Site

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial