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Later theorists saw that the marginal principle could be applied to virtually any choice problem. Summarizing its widespread applicability, the historian T. W. Hutchison wonderfully quipped: “What was important in marginal utility was the adjective rather than the noun” (1953, 16). Modern microeconomic theory thus traces its origins to the marginal revolution. The standard account is not without truth, but it must be immediately added that Menger was the least marginalist of the triumvirate. As Erich Streissler aptly countered, for the Austrians “marginalism was not the essence of their endeavor; it remained—pace Hutchison—an adjective, not the noun” (1972, 426).
1). In a paper on “the Schmoller renaissance,” Peukert (2001) reviews recent additions to the literature. The historian Heath Pearson (1999) argues that the German historical school is itself an artificial and unhelpful abstraction since its membership was not exclusively German, its methods not particularly historical, and its legacy not that of an identifiable school. This reading is challenged by Caldwell (2001d); Pearson (2001) is the reply. 2. Senn (1993 –94, 267–70) lists five reasons for the neglect: the German language poses a barrier to treatments in English; the detailed and lengthy historical analyses that were the hallmark of the school strike many as uninteresting; some of the methodological pronouncements of the school were viewed as extreme; the fact that members of the school supported the political agenda of the house of Hohenzollern undermined their credibility; and antagonisms left over from the First World War reduced interest in the school’s contributions.
Wrote it above the word deductive used by Schmoller” (Hayek [1942 – 44] 1979e, 67 n. 4). Compositive emphasizes that social phenomena like exchange or market valuation are built up or composed from the economizing actions of individual agents and, thus, nicely captures the method that Menger employs. Institutions as Unintended Consequences of Individual Action A second theme of the Principles is that the economizing activity of individuals produces effects that go far beyond the intentions of the agents themselves.