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A note on capital obsolescence (and underutilization) in classical and neoclassical normal positions

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  • Roberto Ciccone

    (Roma Tre University)

Abstract

On account of the relevance that in principle the size and composition of the existing stock of capital goods might have, we attempt to verify whether in the classical and neoclassical approach thereotical positions may retain their role as centres of gravity in situations of prolonged divergences between the existing capital stock and the size and/or physical composition of the set of means of production implied in normal magnitudes. The kind of divergence against which we will compare the one and the other theoretical system consists, in particular, in the maintenance in use of ‘machines’ that have been rendered obsolete by the introduction of some change in the ‘dominant’ methods of production, i.e. the methods relevant to price determination, but which producers find it convenient to continue operating for the rest of their useful life.

Suggested Citation

  • Roberto Ciccone, 2021. "A note on capital obsolescence (and underutilization) in classical and neoclassical normal positions," Bulletin of Political Economy, Bulletin of Political Economy, vol. 15(2), pages 123-146, December.
    • Handle: RePEc:awu:journl:v:15:y:2021:i:2:p:123-146
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    References listed on IDEAS

    as
    1. Pierangelo Garegnani, 2002. "Misunderstanding Classical Economics? A Reply to Blaug," History of Political Economy, Duke University Press, vol. 34(1), pages 241-254, Spring.
    2. Hobson, John Atkinson, 1914. "Work and Wealth: A Human Evaluation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number hobson1914.
    3. Garegnani, Pierangelo, 1979. "Notes on Consumption, Investment and Effective Demand: II," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 3(1), pages 63-82, March.
    4. Garegnani, Pierangelo, 1979. "Notes on Consumption, Investment and Effective Demand: A Reply to Joan Robinson," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 3(2), pages 181-187, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    classical and neoclassical normal positions; capital obsolescence; underutilisation of productive capacity; centres of gravity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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