The Principles Of Economics, with Applications to Practical Problems

Book details

Title
The Principles Of Economics, with Applications to Practical Problems
Publication year listed
1904
Format
Public domain eBook
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About this book

The Principles Of Economics, with Applications to Practical Problems

Author: Frank A. Fetter

Year: 1904

Frank Fetter's 1904 treatise, Principles of Economics , virtually impossible to find prior to this online edition, constructed a general theory of economics in the Austrian tradition that went unsurpassed until Ludwig von Mises's treatise of 1940, Nationaloekonomie . Yet Fetter, an American Austrian long before the inter-war migration from Austria, has not received due recognition for his many contributions to the tradition. Using the axiomatic-deductive method, he traced economic laws to individual human action, and demonstrated that just as the price of each consumer good is determined solely by subjective value, the rate of interest is determined solely by time preference. The rental price of each producer good is imputed to it by entrepreneurial demand and is equal to its discounted marginal value product. The capital value of each durable good is equal to the discounted value of its future rents. Fetter showed how this uniform, subjective theory of value implies the demise of socialist theories of labor exploitation, Ricardian theories of rent, and productivity theories of interest. Building on his Austrian theory of capital, money, interest, and entrepreneurship, Fetter even

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