The use of economic-historical analyses in explaining the process of economic development (using the Austrian school of economics as an example)

Abstract

One particularly important issue under analysis in economics is the theory of economic development. It derives from eighteenth- and nineteenth-century economic doctrines deeply rooted in philosophical thought. The issue of development is of interest not only to economists, but also to representatives of other social sciences. From the perspective of an economist, it seems that one of the more useful tools for analysing the problem of economic development may be the achievements of the Austrian school of economics. When studying the development process, the representatives of this school limit the mathematical modelling of phenomena occurring in the economy, while they often refer to history. They believe that the focus of economics should be human action (conducted under conditions of uncertainty), which undeniably influences development.