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The q-Theory and Replacement Investment: A Cursory Look at the Replacement Decision

In: Keynes, Investment Theory and the Economic Slowdown

Author

Listed:
  • Michael Perelman

    (California State University)

Abstract

In this chapter, I will develop a theoretical framework to discuss the changing degree to which firms resist scrapping capital goods. This analysis builds on the futures market for capital services, the q-theory, and a small number of elementary principles.

Suggested Citation

  • Michael Perelman, 1989. "The q-Theory and Replacement Investment: A Cursory Look at the Replacement Decision," Palgrave Macmillan Books, in: Keynes, Investment Theory and the Economic Slowdown, chapter 4, pages 156-214, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-19940-2_4
    DOI: 10.1007/978-1-349-19940-2_4
    as

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