Austrian and Chicago Schools of Economics

[Godwynn]

What's the difference between the two? They seem very alike to me.

Austrian School
Chicago School

Please don't reply with 'Geography' I will hate you forever.

 

[GoodEnoughForMe]

Location.

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[luiz]

There are plenty of differences. Witout getting into much detail, the Chicago School is much more about utilitarianism while the Austrians focus strongly on morality.

The Chicago School uses all sophisticated mathematical tools that you find in mainstream economics, while the Austrians consider them of secondary importance (and even reject many of their uses). Basically, the Chicago School is much more mainstream and is similar to what we call Neoclassical School, beign one of the most important contributors to that school (though the austrians did contribute too).

 

[Integral]

The Chicago School uses mathematical tools heavily, while the Austrian school does not. Chicago prioritizes econometrics, while the Austrians rely more on...intuitive economcs, with less math. At least, that is what I have been told. Both are libertarian in outlook, and have similar views on policy.

However, the schools come from similar roots: F.A. Hayek, considered one of the founders of the Austrian school, actually taught at the University of Chicago for a time.

I eagerly await the contribution of our resident Austrian (JH).

Integral