L. Lachmann, D. Lavoie and a Critical Look to the Austrian School’s Revival: Can Hermeneutics be a Solution to the Agent-Structure Problem?

In this paper, Austrian’s school revival and some of their members’ U turn toward hermeneutics is questioned, regarding the agent-structure problem in social sciences. Rather than reconciling individual and social structure, the mainstream neoclassical school dichotomize these two constructs. Austrian economics criticize neoclassical economics due to its several reductionist assumptions related with its human agent. On the other hand Austrian school recognizes the significance of “cognitive and subjective individual” as a central unit of analysis related with its action theory. Here in this paper the idea of reconciliation of “subjective individualism with hermeneutics” after the revival of Austrian economics is questioned and it is tried to shown that this attempt is not successful methodologically