Tuesday, December 3, 2013

My new Critical Review article is out

Share far and wide.

Many readers of this blog gave me reactions to this, and for that I am very grateful.

I hope people will be interested in it. I like to think of it as a thoughtful analysis of Hayek's business cycle theory. I come out liking his capital theory for both theoretical and empirical reasons, and not liking the business cycle theory for both theoretical and empirical reasons.

I offer what I think is a new way of putting what I think is wrong with his business cycle theory that I think is right with Keynes, and it connects both of them back to their Wicksellian roots. I don't mention Wicksell specifically so as not to overcomplicate the argument. I had been planning on including it, and it was certainly in the back of my head when I was writing it.

I also think it's a nice paper in that it collects and reviews the scope of the empirical literature. I don't do that in grueling detail (it's really not the venue for that), but I think that my separation of the studies into what can be thought of as reduced form and structural analyses helps a lot to clarify what we do and don't know.

And if nothing else I provide what I think is the most or at least one of the most comprehensive empirical lit reviews.


  1. Congratulations on getting your article published, although as I have told you elsewhere, I regret that part of the title of the paper was changed in the final published version. (From "Mistaken, But Not Crazy" to "Half Right".) I also wish that the table containing the twenty research sources you provided as a summary was retained in the final version, but what's done is done. The changes weren't that devastatingly bad anyway, and they certainly don't mean the end of the world.

    1. One more thing I forgot to add in my last comment...here is the DOI to the article itself, for everyone's convenience.


  2. Daniel,

    What happened to the appendix?:


    There does not seem to be anything listed there

    1. Ya I suppose I should post that before Jeff Friedman yells at me...

  3. And great article by the way -- I enjoyed reading it and learned a lot too:



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