IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/ajdnq.html
   My bibliography  Save this paper

A Retrospective Look at The Hayek Story: Roundaboutness, Sticky Consumption, and Sequestered Capital

Author

Listed:
  • McClure, James

    (Ball State University)

  • Thomas, David Chandler
  • Spector, Lee C.

Abstract

Friedrich Hayek’s business cycle theory, withered throughout the 1930s as he admitted that its underlying model of Böhm-Bawerkian roundaboutness was incomplete and inadequate. In 1934, Hayek started a two-volume book on capital theory, completing only one volume in 1941. Curiously, Hayek (1941) cites Hicks’ (1939) Value and Capital but not the financial measure of roundaboutness that Hicks suggested as a substitute for Böhm-Bawerkian roundaboutness. In 1967, Hicks criticized the inexplicable lags in The Hayek Story. Hayek maintained his view that consumption was sticky and responded to Hicks with a mound-of-honey analogy. Nevertheless, Hayek maintained that his business cycle theory was fundamentally correct and continued to hope that others might someday discover a capital structure theory to undergird it. Toward fulfilling Hayek’s hope, we suggest augmenting the canonical stages of production with a sequestered-capital stage where products are invented, productized, and inventoried prior to launch, uncoordinated by observable prices.

Suggested Citation

  • McClure, James & Thomas, David Chandler & Spector, Lee C., 2020. "A Retrospective Look at The Hayek Story: Roundaboutness, Sticky Consumption, and Sequestered Capital," SocArXiv ajdnq, Center for Open Science.
    • Handle: RePEc:osf:socarx:ajdnq
    DOI: 10.31219/osf.io/ajdnq
    as

    Download full text from publisher

    File URL: https://osf.io/download/5ec0124f221cb1005b12dd0f/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/ajdnq?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. James E. McClure & David Chandler Thomas, 2021. "Schumpeter’s Fatalistic View of Capitalism: How His “Essential” Process of Creative Destruction Survived," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Summer 20), pages 77-101.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:osf:socarx:ajdnq. See general information about how to correct material in RePEc.

    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: OSF (email available below). General contact details of provider: https://arabixiv.org .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.