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Experimental economics has been treated with skepticism by some Austrian economists. We argue that experimental methods are consistent with strong versions of praxeology, and are therefore not methodologically problematic for Austrians. We further argue that experimental research methods have illustrated many uniquely Austrian themes and provide a fruitful method for future Austrian-inspired research.

The chapter studies strategic default using an experimental approach.

The experiment considers a stochastic asset process and a loan with no down-payment. The treatments are two asset volatilities (high and low) and the absence and presence of social interactions via a direct effect on the subject's payoff.

I demonstrate that (i) people appear to follow the prediction of the strategic default model quite closely in the high asset volatility treatment, and that (ii) incorporating social interactions delays the strategic default beyond what is considered optimal.

The study tests adequately the strategic default using a novel experimental design and analyzes the neighbor's effect on that decision.

The present study examines the incremental validity of engaging leadership in predicting five fundamental organizational outcomes (followers’ organizational commitment, work engagement, task performance, organizational citizenship behaviour and counterproductive work behaviour) over transformational leadership.

The study is cross-sectional in nature and a survey questionnaire was used for data collection. Data were collected from 402 workers in different fields. Hierarchical multiple regression was used in order to determine the incremental validity of engaging leadership.

Our results indicated that engaging leadership contributes additional variance over and above transformational leadership in predicting the five organizational outcomes.

The results of the study suggest that combining engaging leadership interventions with transformational leadership interventions may lead to better results.

The present study supports the empirical distinction of engaging leadership from transformational leadership, addressing possible concerns regarding construct redundancy.

Investigating the role of leadership during the COVID-19 pandemic in maintaining the well-being and performance of the medical personnel, as frontline workers, is of major importance. The aim of this study was to investigate the relationships between engaging leadership in health care during COVID-19 pandemic and followers’ work engagement and performance and to test the mediating role of followers’ basic psychological need satisfaction in these relationships.

A cross-sectional study was conducted on a sample consisting of 200 health-care employees. Data were collected starting with May 2020 and ending with November 2020, during the COVID-19 pandemic. Participants reported on the engaging leadership of their direct supervisor and on their own psychological need satisfaction, work meaningfulness, work engagement and quality of care.

The positive association between engaging leadership and followers’ work engagement was fully mediated by followers’ basic needs satisfaction. The relationship between engaging leadership and followers’ quality of patient care was not supported. Work meaningfulness did not mediate the link between engaging leadership and followers’ engagement.

By meeting followers’ needs for autonomy, competence and relatedness, engaging leaders can stimulate followers’ work engagement during outbreaks and other similar crises. Managers in health care may maintain a high level of followers’ work engagement during crises if they adopt an engaging leadership style.

The study investigated for the first time the role of meeting the psychological needs of health-care workers by leaders during a health-care crisis.

The purpose of this paper is to explore the ability of monetary policy to generate real effects in laboratory general equilibrium production economies.

To understand why monetary policy is not consistently effective at stabilizing economic activity, the author vary the types of agents interacting in the economy and consider treatments where subjects are playing the role of households (firms) in an economy where automated firms (households) are programmed to behave rationally.

While the majority of participants’ expectations respond to monetary policy in the direction intended, subjects do form expectations adaptively, relying heavily on past variables and forecasts in forming two-steps-ahead forecasts. Moreover, in the presence of counterparts that are boundedly rational, forecast accuracy worsens significantly. When interacting with automated households, updating firms’ prices respond modestly to monetary policy and significantly to anticipated marginal costs and future prices. The greatest deviations in behavior from theoretical predictions arise from human households (HH). Households persistent oversupply of labor and under-consumption is attributed to precautionary saving and debt aversion. The results provide evidence that the effects of monetary policy on decision making hinge on the distribution of indebtedness of households.

The author present causal evidence of the effects of potential bounded rationality on agents’ consumption and labor decisions.

The present study is to develop an additional perspective on when and why psychological detachment and job crafting behaviors in predicting employee engagement through spirituality and intrinsic motivation. It was hypothesized that spiritual employees are better able to detach themselves from work and craft their job according to their preference and abilities, which would inculcate experience and make them intrinsically motivated and thereby leading to employee engagement.

The sample comprised 408 employees, who are employed in different organizations across India. To test the hypotheses, the author conducted structural equation modeling on SPSS AMOS 22.

The results highlight the partial mediating role of spirituality in the association of psychological detachment with intrinsic motivation as well as between job crafting and intrinsic motivation. The results highlight the fully mediating role of intrinsic motivation in the association of psychological detachment with employee engagement as well as between job crafting and employee engagement.

This study has depicted that spiritual employee who are psychologically detached and have proactive job crafting behavior can achieve higher intrinsic motivation and more engaged.

On the basis of the broaden and build theory, self-determination theory (SDT) and the recovery process (i.e. the effort-recovery model), this paper demonstrates that spirituality plays the role of predictor that drives psychological detachment and encourages job crafting, which has the ability to intrinsically motivate the employee and are able to more engaged in work.

The papers collected here were written for the second biennial Wirth conference on Austrian Economics. The Wirth Institute for Austrian and Central European Studies sponsored the conference in cooperation with the University of Toronto in Mississauga. The conference was held from 17 to 18 October 2008 in Mississauga. The Wirth Institute has a natural home in Edmonton on the campus of the University of Alberta, which is a leading center for Central European Studies. The fact that the Institute has received support not only from government of Austria, but also from the governments of the Czech Republic, Hungary, Poland, Slovakia, and Slovenia reflects its historically minded recognition of the unique intellectual milieu of the Habsburg Empire. This intellectual milieu lasted beyond the breakup of the empire right through to the Anschluss in 1938. It is this milieu that shaped the Austrian school of economics and helped shape the context for the conference.

This study determines the effects of high-involvement work practices (HIWPs) and servant leadership (SL) on job crafting (JC). It also investigates the effect of JC on innovative work behavior (IWB). It further examines the mediating role of JC in the relationship between HIWPs and IWB, as well as between SL and IWB based on self-determination theory and conservation of resources theory.

Data were collected in two waves with a one-week interval (Time 1 and Time 2) from 138 nurses from seven public hospitals in Baghdad through survey design. The data analysis was done through structural equation modeling using smart partial least squares.

This study reveals that HIWPs and SL have significant effects on JC, while JC has a significant relationship with IWB. It also shows that JC has a significant mediating role in the relationship between HIWPs and IWB. Finally, the relationship between SL and IWB is significantly mediated by JC.

This study contributes to the extant literature by revealing the direct effects of JC on IWB. It further unveils the mediating effect of JC on the nexus between HIWPs and IWB, as well as between SL and IWB. This mediating effect has been overlooked in the empirical literature.