IDEAS home Printed from
   My bibliography  Save this book chapter

Capital in the new economy: A Schumpeterian perspective

In: Entrepreneurships, the New Economy and Public Policy


  • Jim Stewart

    (Trinity College)


The “dotcom boom” and subsequent collapse raises issues as to the nature of capital and the relationship between capital and investment. Capital in conventional finance, based on the Fisher-Hirshleifer analysis, is defined as postponed consumption and investment is defined as a trade-off between consumption now and in the future. This paper argues that a more satisfactory explanation of the relationship between investment and capital was developed by the Austrian economist Böhm-Bawerk, who identified capital goods as separate from consumption goods, and where the passage of time is fundamental to the accumulation of capital. Such a process assumes risk rather than uncertainty, and does not capture the essence of Schumpeterian investment.

Suggested Citation

  • Jim Stewart, 2005. "Capital in the new economy: A Schumpeterian perspective," Springer Books, in: Uwe Cantner & Elias Dinopoulos & Robert F. Lanzillotti (ed.), Entrepreneurships, the New Economy and Public Policy, pages 163-179, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-26994-6_10
    DOI: 10.1007/3-540-26994-0_10

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Różański Jerzy & Kopczyński Paweł, 2017. "The influence of the recent financial crisis on the financial situation of Polish listed companies," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(4), pages 110-126, December.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-540-26994-6_10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.