This paper translates F.A. Hayek's informal capital theory into a dynamic equilibrium model. The focus is restricted to Hayek's largely unrecognized contribution in "Utility Analysis and Interest", published by The Economic Journal in 1936, being restated in "The Pure Theory of Capital", first...

Frédéric Bastiat (1801-1850) was a French thinker who did most of his writing in the last six years of his life. One of his major contributions to economic thought was his application of opportunity cost to a wide range of economic policies. The present paper uses the Bastiat approach to...

This essay sets Chicago economics as an example for how today’s economics belittles the importance of explicit philosophical studies. Given that economists keep their methodological stances rather implicit, it is argued that the correct reconstruction of these hidden methodological foundations...

This paper provides a look into what Lucas meant by the term ‘analogue systems’ and how he conceived making them useful. It is argued that any model with remarkable predictive success can be regarded as an analogue system, the term is thus neutral in terms of usefulness. To be useful Lucas...

This introductory paper offers a look into the intellectual and technical progress that led Robert E. Lucas to his seminal paper entitled Expectations and the neutrality of money. It is argued that the neutrality paper applies the capital-theoretic approach of Lucas’s firm microeconomics of...

This paper is an attempt to understand Robert E. Lucas’s microfounded models of the 1960-70s as results of a structuralist project. It is argued that the way Lucas derived macroeconomic outcomes from the decisions of market agents is in line with the basic tenet of the semirealist version of...

The article deals with the relation between assumptions of economic theories and their political implications. Two canons of economic science are being analyzed according to the degree of abstraction. A hypothesis is that the more abstract formal canon is connected with a liberal kind of...

This article applies to microeconomics a classic distinction of the philosophy of language, i.e., that between analytical and synthetic propositions.

The purpose of this study is to identify the key factors that influence FDI decisions in Kenya and to explore the empirical relationship between FDI and economic growth in Kenya.The findings of the study reveal that the main determinants of FDI in Kenya are market size (proxied by GDP), stable...