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The Production of Commodities and the Structure of Production

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  • Vienneau, Robert

Abstract

Consider a model of the production of commodities by means of commodities. This article illustrates how to construct a Hayekian triangle with such a model, in the case with circulating capital. Capital-theory paradoxes, specifically the reswitching of techniques, have implications for such triangles. The use of such triangles to tell the stories that Austrian economists want to tell cannot be sustained. The switch point that is normal in a reswitching example, from a mainstream neoclassical perspective, has perverse Hayekian triangles. The switch point that is perverse from a mainstream perspective has Hayekian triangles consistent with the Austrian story about how a decreased time preference rotates the triangle to lengthen the structure of production.

Suggested Citation

  • Vienneau, Robert, 2026. "The Production of Commodities and the Structure of Production," MPRA Paper 128751, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:128751
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    References listed on IDEAS

    as
    1. Robert L. Vienneau, 2017. "The Choice of Technique with Multiple and Complex Interest Rates," Review of Political Economy, Taylor & Francis Journals, vol. 29(3), pages 440-453, July.
    2. Renaud Fillieule, 2007. "A Formal Model in Hayekian Macroeconomics: The Proportional Goods-in-Process Structure of Production," Post-Print hal-03931216, HAL.
    3. repec:dau:papers:123456789/13357 is not listed on IDEAS
    4. Saverio M. Fratini, 2019. "A note on re-switching, the average period of production and the Austrian business-cycle theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 363-374, December.
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    8. Carlo Milana, 2024. "Refuting Samuelson’s capitulation on the re-switching of techniques in the Cambridge capital controversy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 37(2), pages 179-197, June.
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    Keywords

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    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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