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Reswitching And Decreasing Demand For Capital

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  • Saverio M. Fratini

Abstract

We consider a Wicksellian or Neo-Austrian model of production with a continuum of techniques. For this model we provide an example in which a monotonically decreasing demand for capital schedule is combined with reswitching and a net product per worker that increases (over a certain interval) as the interest rate increases. Copyright � 2010 The Author. Journal compilation � 2010 Blackwell Publishing Ltd.

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Article provided by Wiley Blackwell in its journal Metroeconomica.

Volume (Year): 61 (2010)
Issue (Month): 4 (November)
Pages: 676-682

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Handle: RePEc:bla:metroe:v:61:y:2010:i:4:p:676-682

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  1. Garegnani, P, 1970. "Heterogeneous Capital, the Production Function and the Theory of Distribution," Review of Economic Studies, Wiley Blackwell, vol. 37(3), pages 407-36, July.
  2. Hatta, Tatsuo, 1976. "The Paradox in Capital Theory and Complementarity of Inputs," Review of Economic Studies, Wiley Blackwell, vol. 43(1), pages 127-42, February.
  3. Schefold, Bertram, 2008. "C.E.S. production functions in the light of the Cambridge critique," Journal of Macroeconomics, Elsevier, vol. 30(2), pages 783-797, June.
  4. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  5. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
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Cited by:
  1. Saverio M. Fratini, 2011. "The Hicks-Malinvaud average period of production and 'marginal productivity': a critical assessment," Departmental Working Papers of Economics - University 'Roma Tre' 0128, Department of Economics - University Roma Tre.
  2. Fratini, Saverio M., 2012. "Malinvaud on Wicksell’s legacy to capital theory: some critical remarks," MPRA Paper 39574, University Library of Munich, Germany.

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