Ludwig von Mises considered immediate overconsumption essential to the Austrian Business Cycle Theory (ABCT); Friedrich Hayek never agreed. Examining this disagreement, Roger Garrison concluded that Hayek's exposition of ABCT (a stages-of-production framing without immediate overconsumption)...

New product R&D precedes all other stages of production; it is itself a three-stage process. It begins with the idea prospecting that leads to working prototypes. Next, comes productization—the conversion of working prototypes into products that can be manufactured with a reasonable prospect...

Friedrich Hayek's research focus shifted from a formal analysis of the capital structure in the early 1930s to the study of the economy of knowledge in 1945. He never, as it is too often said, abandoned economics. The abandonment narrative impedes understanding of Austrian economics generally...

Joseph Schumpeter lamented that capitalism would not survive because he thought that its defining process—creative destruction—would be overshadowed by large firms. Witnessing the emergence of rising numbers of increasingly large firms, Schumpeter did not think that those responsible for...