Abstract

Our response to Davidson is two‐pronged. First, we dispute the basis for his dismissal of Austrian economics as presented by O'Driscoll and Rizzo. In particular, we reject his claim, dictated entirely by his Post Keynesian perspective, concerning an “identical axiomatic foundation” of Austrian and neoclassical economics. Second, we seek to show that Davidson's criticism of neoclassicism is based on a superficial, incorrect, and outmoded reading of neoclassical economics.