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Roundaboutness is Not a Mysterious Concept: A Financial Application to Capital Theory

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  • N. Cachanosky
  • P. Lewin

Abstract

We apply the EVA terminology to the concepts of roundaboutness and average period of production in capital theory. By doing this we show that these terms have a clear and well understood financial interpretation. A financial application to capital theory helps to clarify obscure and controversial economic terms.

Suggested Citation

  • N. Cachanosky & P. Lewin, 2014. "Roundaboutness is Not a Mysterious Concept: A Financial Application to Capital Theory," Review of Political Economy, Taylor & Francis Journals, vol. 26(4), pages 648-665, October.
    • Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:648-665
    DOI: 10.1080/09538259.2014.957475
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