A Formalization of Austrian Economics. Praxeological Foundations: The Base System and Its Derived Theorems
Rafał Komendarczyk, Walter Block, John Levendis, Frank Tipler
econ.TH
Jun 15, 2026 · v1
math.LO
TL;DR
A Lean companion encodes the praxeology axioms as type classes and constructs concrete models whose type-checking is a constructive consistency proof.
Abstract
This paper presents an axiomatization of Ludwig von Mises' praxeology in many-sorted first-order logic, isolating the foundational layer. We introduce a formal language with five sorts ({\sf Actors}, {\sf Actions}, {\sf Ends}, {\sf Things}, {\sf Times}) and six primitive relations ({\em Acts}, {\em Avail}, {\em EndOf}, {\em Use}, a preference order, and a time order), together with a base axiom system organised into three layers: the structure of action itself, the actor's preference order together with its revelation in choice, and material scarcity. The base system captures purposeful action in its bare praxeological form. Working entirely within the base system we derive the core classical Misesian propositions as Hilbert-style theorems: the asymmetry of revealed preference, the existence of opportunity cost, the structural scarcity of time, the subjectivity of opportunity cost, the law of diminishing marginal utility, and the increasing marginal disutility of labour. Where a theorem requires structure beyond the praxeological core -- as with diminishing marginal utility -- the additional premises are made explicit; identifying these hidden premises is one of the methodological payoffs of the approach. A self-contained {\em Lean} companion encodes the language as {\em Lean} type classes and constructs concrete models -- a three-period Robinson Crusoe economy and its infinite-time extension -- whose acceptance by the type-checker is a constructive consistency proof of the full base theory.
Problem
Mises' praxeology, the foundational layer of Austrian economics, lacks a rigorous formal axiomatization separating its core assumptions from derived propositions.
Approach
The paper axiomatizes praxeology in many-sorted first-order logic with five sorts and six primitive relations, organized into three layers, and derives the core Misesian propositions as Hilbert-style theorems. A Lean companion encodes the language as type classes and constructs concrete models, including a Robinson Crusoe economy and its infinite-time extension.
Results
Core propositions such as the asymmetry of revealed preference, opportunity cost, and the law of diminishing marginal utility are derived, with hidden premises made explicit; acceptance of the Lean models by the type-checker gives a constructive consistency proof of the base theory.