ABSTRACT
Thanks in large part to the later work of Hayek and the varied contributions of Ludwig Lachmann, the post-revival generation of Austrian economists is rediscovering the importance of a theory of economic and social institutions for a healthy understanding of economic and social order. One can legitimately say ‘rediscovering’ because an emphasis on institutions was at the heart of Carl Menger’s work that founded a distinct Austrian approach.1 While Hayek’s work on the evolution of institutions (e.g., Hayek 1988) put the notion of spontaneous order back at the centre of Austrian economics, Lachmann’s enduring contribution can be seen as reminding us of the equal importance of seeing institutions in terms of the meaning that they have for actors. Lachmann’s work on institutions can thus be seen as an attempt to extend subjectivism beyond tastes, knowledge and expectations to our understanding of the very institutions that help to co-ordinate our diverse subjectivities.
