This book explores the neglected contribution of the American and English "psychological" school to economic theory, especially to the development and refinement of the Austrian school of economics. It argues that Frank Knight, Frank Fetter, Herbert Davenport, Philip Wicksteed and J.B. Clark among others improved on the original Austrian theory by Menger and Bohm-Bawerk by providing a coherent subjectivist foundation for the theories of production and distribution. They succeeded where economic theory before them failed - to develop the theories of interest, profit, wages and rents based solely on the principles of subjective value and marginal utility, eschewing the last remnants of the old cost of production models. This book represents a look at what mainstream economic theory might have looked like had the erasure of Mengerian Austrian price theory by Marshallian and Walrasian thoeries not taken place, and had the improvements and refinements of the Mengerian tradition, itself done by the Anglo-Saxon followers of Menger, been fully appropriated.

This book presents the case that the origins of American liberty should not be sought in the constitutional-reformist feats of its "statesmen" during the 1780s, but rather in the political and social resistance to their efforts. There were two revolutions occurring in the late 18th century America: the modern European revolution "in favour of government," pursuing national unity, "energetic" government and centralization of power (what scholars usually dub "American founding"); and a conservative, reactionary counter-revolution "in favour of liberty," defending local rights and liberal individualism against the encroaching political authority. This is a book about this liberal counter-revolution and its ideological, political and cultural sources and central protagonists. The central analytical argument of the book is that America before the Revolution was a stateless, spontaneous political order that evolved culturally, politically and economically in isolation from the modern European trends of state-building and centralization of power. The book argues, then, that a better model for understanding America is a "decoupled modernization" hypothesis, in which social modernity is divested from the politics of modern state and tied with the pre-modern social institutions.

This book explores the neglected contribution of the American and English "psychological" school to economic theory, especially to the development and refinement of the Austrian school of economics. It argues that Frank Knight, Frank Fetter, Herbert Davenport, Philip Wicksteed and J.B. Clark among others improved on the original Austrian theory by Menger and Bohm-Bawerk by providing a coherent subjectivist foundation for the theories of production and distribution. They succeeded where economic theory before them failed - to develop the theories of interest, profit, wages and rents based solely on the principles of subjective value and marginal utility, eschewing the last remnants of the old cost of production models. This book represents a look at what mainstream economic theory might have looked like had the erasure of Mengerian Austrian price theory by Marshallian and Walrasian thoeries not taken place, and had the improvements and refinements of the Mengerian tradition, itself done by the Anglo-Saxon followers of Menger, been fully appropriated.