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C.E. Ferguson and the Neoclassical Theory of Capital: A Matter of Faith

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  • Scott Carter

Abstract

In 1969 the American neoclassical economist C.E. Ferguson wrote that reliance on neoclassical aggregate production and distribution theory is a 'matter of faith' to be sorted out (he says 'answered') by econometricians. Ferguson was criticized on both sides of the debate for invoking this religious metaphor. Using the methodological framework of A.J. Cohen & G.C. Harcourt (2005), Introduction: capital theory controversy: scarcity, production, equilibrium, and time, in: A. Cohen, G.C. Harcourt & C. Bliss (Eds) Capital Theory, 3 Vols. Northampton, MA: Edward Elgar, this paper argues that faith plays a recurring role in all capital controversies and especially in modern theories of growth that rely wholesale on the aggregate production function. Ferguson's faith proves to be much more insightful than previously recognized.

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  • Scott Carter, 2011. "C.E. Ferguson and the Neoclassical Theory of Capital: A Matter of Faith," Review of Political Economy, Taylor & Francis Journals, vol. 23(3), pages 339-356.
    • Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:339-356
    DOI: 10.1080/09538259.2011.583818
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    1. Avi J. Cohen, 1989. "Prices, Capital, and the One-Commodity Model in Neoclassical and Classical Theories," History of Political Economy, Duke University Press, vol. 21(2), pages 231-251, Summer.
    2. Bliss, C. J., 1975. "Capital Theory and the Distribution of Income," Elsevier Monographs, Elsevier, edition 1, number 9780720436044 edited by Bliss, C. J..
    3. Mill, James, 1844. "Elements of Political Economy," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number 3.
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    Cited by:

    1. Stefano Zambelli, 2014. "Aggregate Production Functions and Neoclassical Properties: An Empirical Verification," ASSRU Discussion Papers 1405, ASSRU - Algorithmic Social Science Research Unit.
    2. Ben Fine, 2013. "Economics - Unfit for purpose: The Director's Cut," Working Papers 176, Department of Economics, SOAS University of London, UK.
    3. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.

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