ABSTRACT
In the past 25 years, a large amount of new research in Austrian economics has developed and expanded the basic themes that are central to its unique identity. There have been many advances in Austrian macroeconomics. These include new work on business cycle theory and on alternative monetary institutions. The theory of entrepreneurship has been a subject of great importance in Austrian economics since the publication of Israel Kirzner’s Competition and Entrepreneurship. One could argue, of course, that this was implicit in the prior works of Ludwig von Mises and Friedrich Hayek. Nevertheless, there is an important difference between implicit and explicit ideas. Over a long period of time, Kirzner refined his theory of entrepreneurial discovery or alertness in many books. The entrepreneurial function is closely related to market processes and economic institutions. These interrelations are both complex and important. It will help to somewhat artificially separate them for our consideration.
