The Austrian School of Economics is an economic school initiated by Carl Menger (1840–1921). Menger’s first disciples were Eugen von Böhm-Bawerk (1851–1914) and Friedrich von Wieser (1851–1914). A student of the latter two, Joseph Schumpeter (1883–1950), is sometimes associated with the school, but he departed early from Austrian ideas. The Austrian current was continued by Ludwig von Mises (1881–1973) and Friedrich A. von Hayek (1889–1992). Other representatives were Murray N. Rothbard (1926–1995), Ludwig M. Lachmann (1906–1990), and Israel M. Kirzner (1930– ). The school still exists and is universally active, though concentrated mostly in the United States.

The Austrian School is more than an approach to economic theory. It also deals with matters of political philosophy, social ontology, and social science epistemology. It supposes a philosophical ...