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Http://www.stephenhi Cks.org/wp-content/u Ploads/2013/03/hayek F-use-of-knowledge-i N-society.pdf

hayekf-use-of-knowledge-in-society.pdf
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🔗 Source: stephenhicks.org
📊 Size: 75 KB
👤 Author: Stephen Hicks
⬇️ Downloads: 63

Summary

The problem of constructing a rational economic order is not just a matter of logic, but rather a problem of utilizing knowledge that is dispersed among individuals. The economic calculus can solve the logical problem, but it does not provide an answer to the economic problem of society, as the data required for the calculus is never given to a single mind. The economic problem is a problem of how to secure the best use of resources known to any member of society, for ends whose relative importance only individuals know. This problem is obscured by recent refinements of economic theory, particularly the use of mathematics, which has led to a misconception about the nature of the economic problem. The solution to this problem depends on whether a central authority or decentralized planning by many individuals can make better use of existing knowledge. The answer turns on the relative importance of different kinds of knowledge, including scientific knowledge and the knowledge of particular circumstances of time and place, which is unique to each individual.

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The problem of constructing a rational economic order is not just a matter of logic, but rather a problem of utilizing knowledge that is dispersed among...

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  • Author: Stephen Hicks
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