Hicks Voiced the Opinion that Austrian Vertical Analysis of Growth Problems Was Superior to Walrasian Horizontal Approaches

With regards to the historical development of ideas it would be interesting to research the question of why after the confrontation between the critics of Austrian capital theory lead by Knight and its defenders under the banner of Machlup and von Hayek it fell into "Rip van Winklian sleep." It was not until the end of the sixties that it was revitalized by Hicks, Bernholz, Reetz, von Weizsäcker, Fehl and Jaksch. At the beginning of this period Hicks voiced the opinion that Austrian vertical analysis of growth problems was superior to Walrasian horizontal approaches. At this point we would like to mention that Hicks had already expressed unease, concerning the results of the thirties' capital controversy in his book Value and Capital: "The core of truth of the Austrian theory needs to be rediscovered before we can really claim to have a satisfactory theory of capital." Following this Hicks developed his theoretical approach to capital theory. . .

--Malte Faber, Introduction to Modern Austrian Capital Theory, Lecture Notes in Economics and Mathematical Systems 167 (Berlin: Springer-Verlag, 1979), 33.