Title: The Legacy of Knut Wicksell to Capital Theory
Abstract: Abstract Wicksell's contributions to capital theory focused on stationary states in four distinct models intended to account for the time dimension of production in market economies. We now have a better understanding of the true challenges because of two developments: a full theory of intertemporal general equilibria and a methodology for comparative analysis as explained by Hicks. In Wicksell's equilibria, the real interest rate turns out to be equal to the marginal productivity of the volume of social capital, a concept that Wicksell could not master and hence avoided. Challenges remain, particularly regarding the best way to account for complementarities and substitutions over time.
Publication Year: 2003
Publication Date: 2003-12-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 9
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