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The Two‐Sector Von Thünen Original Marginal Productivity Model Of Capital; And Beyond

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  • Erkko Etula

Abstract

This article considers a two‐sector model of scalar capital from the perspectives of smoothly differentiable neoclassical technologies and also non‐differentiable technologies based on discrete alternative Leontief–Sraffa techniques. The analysis shows that in these Thünen‐like scenarios without joint production the real wage and the interest rate are necessarily in an inverse Ricardian tradeoff. This complements the findings of Samuelson and Etula (2006, Japan and the World Economy, 18, pp. 331–356) and completes the analysis of single homogeneous scalar capital.

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  • Erkko Etula, 2008. "The Two‐Sector Von Thünen Original Marginal Productivity Model Of Capital; And Beyond," Metroeconomica, Wiley Blackwell, vol. 59(1), pages 85-104, February.
    • Handle: RePEc:bla:metroe:v:59:y:2008:i:1:p:85-104
    DOI: 10.1111/j.1467-999X.2007.00293.x
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    References listed on IDEAS

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    1. Robert M. Solow, 1955. "The Production function and the Theory of Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(2), pages 101-108.
    2. Samuelson, Paul A, 1983. "Thunen at Two Hundred," Journal of Economic Literature, American Economic Association, vol. 21(4), pages 1468-1488, December.
    3. Liviatan, Nissan & Samuelson, Paul A., 1969. "Notes on Turnpikes: Stable and unstable," Journal of Economic Theory, Elsevier, vol. 1(4), pages 454-475, December.
    4. Dickinson, H D, 1969. "Von Thunen's Economics," Economic Journal, Royal Economic Society, vol. 79(316), pages 894-902, December.
    5. Samuelson, Paul A, 1986. "Yes to Robert Dorfman's Vindication of Thunen's Natural-Wage Derivation [Thunen at Two Hundred]," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1777-1785, December.
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    Cited by:

    1. Nellinger Ludwig, 2014. "Literaturbeitrag / Review Book. Über die Natur und das Wesen des Geldes – J. H. von Thünens unveröffentlichtes Manuskript zur Geldtheorie / The Nature and the Essence of Money – J. H. von Thuenen’s un," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(1), pages 85-110, February.
    2. Samuelson, Paul A. & Etula, Erkko M., 2006. "Complete work-up of the one-sector scalar-capital theory of interest rate: Third installment auditing Sraffa's never-completed "Critique of Modern Economic Theory"," Japan and the World Economy, Elsevier, vol. 18(3), pages 331-356, August.
    3. Nellinger, Ludwig, 2011. "Zur Herleitung der Thünen'schen Grabsteinformel," Thuenen-Series of Applied Economic Theory 120, University of Rostock, Institute of Economics.
    4. Freni, Giuseppe, 2016. "Back to the Sixties: A Note on Multi-Primary-Factor Linear Models with Homogeneous Capital," MPRA Paper 73677, University Library of Munich, Germany.
    5. Nellinger, Ludwig, 2009. "Über die Natur und das Wesen des Geldes: Johann Heinrich von Thünens unveröffentlichter Beitrag zur Geldtheorie," Thuenen-Series of Applied Economic Theory 110, University of Rostock, Institute of Economics.

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