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The Nationalökonomische Gesellschaft (Austrian Economic Association, NOeG) provides a prominent example of the Viennese economic circles and associations that more than academic economics dominated scientific discourse in the interwar years. For the first time this chapter gives a thorough account of its history, from its foundation in 1918 until the demise of its long-time president, Hans Mayer, 1955, based on official documents and archival material. The topics treated include its predecessor and rival, the Gesellschaft österreichischer Volkswirte, its foundation in 1918 soon to be followed by years of inactivity, the relaunch by Mayer and Mises, the survival under the NS-regime and the expulsion of its Jewish members and the slow restoration after 1945. In particular, an attempt is made to provide a list of the papers presented to the NOeG, as complete as possible, for the period 1918–1938.

Historians of economic thought have begun to reintegrate “un-Austrian” Austrians back into discussions of Austrian Economics, yet many scholars have argued that the Austrian School dissolved after emigration, with only Mises and his followers left to carry on the legacy. This chapter argues that a renewed focus on the networks established by the Austrians themselves, before and after emigration, reveals a distinctly different picture of Austrian Economics. Focusing on their shared interest in international trade theory and business cycle theory and their continued contributions to economic methodology, we see the émigré Austrians advancing Austrian ideas while also reconstituting and elaborating new Austrian affiliations. Ultimately, we find ourselves in agreement with Herbert Furth that Austrian Economics is far broader than Hayek, Mises, and their acolytes would have it, and that it is vital to understand and preserve this more diverse tradition by investigating more closely the works of Haberler, Machlup, Morgenstern, and others.

In this chapter it is argued that when the Austrian revival takes place in the 1970s and 1980s the image of economics as an analytical science which can be methodologically kept clean from value judgments, and the economist as a pure truth-seeker shapes modern Austrian economics at the expense of an idea of a socially involved, embedded scholar with a responsibility toward society which was characteristic of the pre-WWII Austrian school. The neglect of that part of the Austrian heritage is important not only for how we understand the role and responsibility of the social scientist but also because it alters what we consider to be relevant and valid economic knowledge. The chapter demonstrates that insight into economic processes was excluded from what was considered valid economic knowledge and how social relevance of knowledge was no longer a goal in the postwar Austrian School. The chapter identifies alternative currents in the modern Austrian school to this general trend and suggests ways forward to think about the appropriate institutions to promote relevance and the moral conduct of (Austrian) economics.

For better understanding the connections between the Viennese circles in which Menger was involved, it is necessary to make some remarks on the Viennese context where they developed. Since the end of the 19th century up to the interwar period, Vienna was a very lively city from a cultural point of view, the birthplace of modernism (Janik & Toulmin, 1973). In the age of the late Habsburg monarchy as well as in the post-First War ‘Red Vienna’, the intellectual, scientific and artistic life of the Austrian capital was so fervent that those years are recalled by historians as the Viennese Enlightenment, the gay apocalypse and the golden autumn: ‘two generations were enough to cover the whole period. The economist Carl Menger (1841–1920) shaped the beginning, and his son, the mathematician Karl Menger (1902–1985), witnessed the end’ (Golland & Sigmund, 2000, p. 34). After the First World War, from an economic point of view, a high inflation overwhelmed the country; while from a political point of view, ‘the new Austria was fragmented and labyrinthine’ (Leonard, 1998, p. 6): the Christian socialists were the conservative part of the society, but one third of citizens supported the new social-democratic party, which had the majority in Vienna.

Nobody concerned with political economy can neglect the history of economic doctrines. Structural changes in the economy and society influence economic thinking and, conversely, innovative thought structures and attitudes have almost always forced economic institutions and modes of behaviour to adjust. We learn from the history of economic doctrines how a particular theory emerged and whether, and in which environment, it could take root. We can see how a school evolves out of a common methodological perception and similar techniques of analysis, and how it has to establish itself. The interaction between unresolved problems on the one hand, and the search for better solutions or explanations on the other, leads to a change in paradigma and to the formation of new lines of reasoning. As long as the real world is subject to progress and change scientific search for explanation must out of necessity continue.

During the last years of his life, the mathematician Karl Menger worked on a biography of his father, the economist and founder of the Austrian School of Economics, Carl Menger. The younger Menger never finished the work. While working in the Menger collections at Duke University’s David M. Rubenstein Rare Book and Manuscript Library, we discovered draft chapters of the biography, a valuable source of information given that relatively little is known about Carl Menger’s life nearly a hundred years after his death. The unfinished biography covers Carl Menger’s family background and his life through early 1889. In this chapter, the authors discuss the biography and the most valuable new insights it provides into Carl Menger’s life, including Carl Menger’s family, his childhood, his student years, his time working as a journalist and newspaper editor, his early scientific career, and his relationship with Crown Prince Rudolf.

Tourism satellite accounts (TSA) are important tools for demonstrating the economic impact of tourism on a country and state level. A regional TSA (RTSA) offers the statistical groundwork for theoretical as well as practical users to underpin their own statistical evaluations and analyses, providing a regionalised view of consumption by tourists. This paper aims to extend TSA with respect to the indirect effects of tourism and the leisure demand of residents in their usual environment.

The study is based on the recommended framework for TSA‐building. The case study of Vienna will demonstrate the valuable information of a RTSA as city tourism is a very complex phenomenon and this impact is difficult to capture.

For 2006, the TSA method found that tourism made €1.36 billion in direct value added to Vienna's economy, or a share of 1.9 per cent of the Viennese gross regional product. Considering the direct and indirect effects of tourism a total value‐added of €4.05 billion for Vienna in 2006 is obtained. According to this figure, tourism contributed 5.7 per cent to the overall regional gross value added in Vienna. In taking an overall look at the expenditure on leisure‐time consumption and in the non‐usual environment (tourism), it is found that Vienna contributes €8.11 billion or 11.5 per cent to the gross regional product.

This paper is one of the first papers about building a TSA for a city. Vienna was the first state to commission a regional TSA (RTSA), followed by Upper and Lower Austria.

Austrian economist Ludwig Mises’s central role in the socialist calculation debates has been consensually acknowledged since the early 1920s. Yet, only recently Nemeth, O’Neill, Uebel, and others have drawn particular attention to Mises’s encounter with logical empiricist Otto Neurath. Despite several surprising agreements, Neurath and Mises certainly provide different answers to the questions “what is meant by rational economic theory” (Neurath) and whether “socialism is the abolition of rational economy” (Mises). Previous accounts and evaluations of the exchange between Neurath and Mises suffer from attaching little regard to their idiosyncratic uses of the term “rational.” The paper at hand reconstructs and critically compares the different conceptions of rationality defended by Neurath and Mises. The author presents two different resolutions to a detected tension in Mises’s deliberations on rationality: the first is implicit in Neurath’s, O’Neill’s, and Salerno’s reading of Mises and faces several interpretational problems; the author proposes a divergent interpretation. Based on the reconstructions of Neurath’s and Mises’s conceptions of rationality, the author suggests some implications with respect to Viennese Late Enlightenment and the socialist calculation debates.

Purpose – The aim of this note is to explain what Hayek meant when in The Sensory Order he claimed that Mach was one of his fundamental readings in psychology while he was writing The Sensory Order.

Methodology/approach – A historical approach to show the different role Mach played in Hayek and Neurath/Carnap.

Findings•A parallelism between Mach–Kant and Hayek–Mach in psychology.•Hayek's rejection of Mach's final philosophical approach as well as his aversion against the Vienna Circle's positivism as forms of metaphysics, based on an awkward definition of isomorphism.

Research limitations/implications•The human sciences cannot be reduced to the natural sciences.•Any form of knowledge is knowledge of “how” rather than of “what”.

Originality/value of the paper•To show Mach's role in Hayek's psychology.•To consider The Sensory Order as a relevant part of Hayek's struggle against reductionism in psychology.

This chapter provides a comprehensive survey of the contributions of the Austrian school of economics, with specific emphasis on post-WWII developments. We provide a brief history and overview of the original theorists of the Austrian school in order to set the stage for the subsequent development of their ideas by Ludwig von Mises and F. A. Hayek. In discussing the main ideas of Mises and Hayek, we focus on how their work provided the foundations for the modern Austrian school, which included Ludwig Lachmann, Murray Rothbard and Israel Kirzner. These scholars contributed to the Austrian revival in the 1960s and 1970s, which, in turn, set the stage for the emergence of the contemporary Austrian school in the 1980s. We review the contemporary development of the Austrian school and, in doing so, discuss the tensions, alternative paths, and the promising future of Austrian economics.