Frank Knight and the Chicago School

Frank Knight (18851972) disliked the idea of a school of thought associated with his work. Ironically, however, he is usually considered one of the founders of the Chicago School of Economics, a group of economists whose members are among the most honored and decorated in history. Many have speculated that Knight himself would have received the Nobel Prize had he lived longer; the prize is awarded only to living persons. Knight was concerned with a wide range of subjects, including such philosophical topics as means vs. ends, economics as a study of human nature and human communication (including lying). As an abstract theorist, Frank Knight emphasized the role of risk and uncertainty in economic affairs. Knight also was heavily involved in one of the popular economic topics of his day: is economics a philosophical and behavioral study, or is it an empirical science? Although Knight did not create a systematic economic theory, his keen critical eye and his biting wit make him one of the most colorful and provocative of all the great economists.