The Current State of Capital Theory: A Tale of Two Paradigms

Abstract

To most economists, with the exception of Mrs. Robinson,' is almost synonymous with controversy. I am not an historian of economic thought; those who are more knowledgeable in this field could probably push the capital controversy back into antiquity. However, one may certainly take 1818 as a seminal date, when Torrens published his scathing attack on Ricardo's theory of value in the Edinburgh Magazine and, three years later, elaborated upon his criticism in a book.