I’d like to create a small essay/economic analysis (20-30 pages) on the effects of nationalization on Venezuela’s economy … for fun of course. My question is: How would an Austrian approach this? What kind of structure would you follow? I realize that there are certainly many approaches but I’m kind of at a loss so any advice would help. If there are any papers you could recommend I read to get me started that would be very helpful.
I feel like I’m rambling but you have to know that you guys are rock stars in my world.
When I think of an economic analysis I think of first starting off by explaining the method employed to gather data, providing the data that you’ve gathered and the conclusions you draw from that data. The Austrian approach of course is very different.
I guess what I’m asking is that if you had to produce an analysis for a client, what form would that take? Is there an example that you particularly like that I could potentially emulate for this and other analyses? For instance I was asked if I could write something up on what I thought about the local real estate market.
Sorry if this is kind of a basic question and also the fact that it’s a bit non-specific. Thanks for your help.
If your client wants you to explain the history (including the present situation) or predict the future of the local real estate market, then your analysis is economic history. Economic history is a blending of economic theory (i.e., what is universally true for all markets and all real estate markets) and with knowledge of contingent conditions for your particular market. The difficulty of economic history is judging the relevant of the different causal factors. Take a look at Mises’s book, Theory and History:
If your client wants you to assess the independent effect of a single causal factor, then your analysis is applied economics. Applied economics constructs a theory incorporating all the relevant conditions of the situation and then changes the single causal factor tracing through its effects on the market in an imaginary construct. An example of applied economics is Joseph Calandro’s book, Applied Value Investing: