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The Austrian School is a heterodox [1] [2] school of economic thought that is based on methodological individualism —the concept that social phenomena result exclusively from the motivations and actions of individuals. Current-day economists working in this tradition are located in many different countries, but their work is still referred to as Austrian economics. Among the theoretical contributions of the early years of the Austrian School are the subjective theory of value , marginalism in price theory and the formulation of the economic calculation problem , each of which has become an accepted part of mainstream economics. Since the midth century, mainstream economists have been critical of the modern day Austrian School and consider its rejection of mathematical modelling , econometrics and macroeconomic analysis to be outside mainstream economics , or "heterodox". The Austrian School owes its name to members of the German historical school of economics , who argued against the Austrians during the lateth century Methodenstreit "methodology struggle" , in which the Austrians defended the role of theory in economics as distinct from the study or compilation of historical circumstance. In , Menger published Investigations into the Method of the Social Sciences with Special Reference to Economics , which attacked the methods of the historical school. Gustav von Schmoller , a leader of the historical school, responded with an unfavorable review, coining the term "Austrian School" in an attempt to characterize the school as outcast and provincial. The school originated in Vienna in the Austrian Empire.

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Analysis Of Robert E Lane

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