On the Praxeological and Argumentative Foundations of Economic Axioms

Bonawentura Lach

Master's thesis

Abstract:

In my bachelor thesis I pointed out why using praxeology, as apodictically true logic of human action, is better than empiricist approach in doing the economic science. I argued that because praxeology bases on the true assumptions, its conclusions have to be universal and certain. Now, in my master thesis, I would like to show why the misesian-wing assumptions are true. In other words; I would like to focus on the a priori of action and a priori of argumentation to prove why such categories as: time preference, scarcity, choice, cost, causality, profit and loss, preferences, uncertainty of future knowledge etc. are necessary and cannot be denied. I will also show how some basic economic laws (e.g. the law of diminishing marginal utility, the law of costs, the law of supply and demand, the quantitative theory of money…) are founded and why one can never deny them. In my thesis I will adopt the method of verbal logic and deduction. I will also analyze the literature devoted to that topic. Can we be sure that the assumptions of the Austrian School of Economics are true? Do we have to test them against reality, or can we discover them through introspection? Do economic laws require empirical testing?

Abstract:

In my bachelor thesis I pointed out why using praxeology, as apodictically true logic of human action, is better than empiricist approach in doing the economic science. I argued that because praxeology bases on the true assumptions, its conclusions have to be universal and certain. Now, in my master thesis, I would like to show why the misesian-wing assumptions are true. In other words; I would like to focus on the a priori of action and a priori of argumentation to prove why such categories as: time preference, scarcity, choice, cost, causality, profit and loss, preferences, uncertainty of future knowledge etc. are necessary and cannot be denied. I will also show how some basic economic laws (e.g. the law of diminishing marginal utility, the law of costs, the law of supply and demand, the quantitative theory of money…) are founded and why one can never deny them. In my thesis I will adopt the method of verbal logic and deduction. I will also analyze the literature devoted to that topic. Can we be sure that the assumptions of the Austrian School of Economics are true? Do we have to test them against reality, or can we discover them through introspection? Do economic laws require empirical testing?

Keywords

praxeology, Economic Axioms, Austrian School

Language used: English

Date on which the thesis was submitted / produced: 23. 5. 2023

Thesis defence

• Date of defence: 7. 6. 2023
• Supervisor: Norbert Slenzok, Ph.D.
• Reader: Mgr. Jan Gazda, Ph.D.

CEVRO Institute

Master programme / field:
Philosophy, Politics, Economics / Philosophy, Politics, Economics