Wicksell Effect Research Articles

Wicksell Effects and Reswitchings of Technique in Capital Theory

Wicksell Effects and Reswitchings of Technique in Capital Theory

Der Wicksell-Effekt im prozeβablauf: Zum zusammenhang zwischen umwertung und einkommensverteilung

The Wickseil Effect in a flow analysis: On the Relation between Revaluation and Income Distribution. — Based on a neo-classical model it is shown that the Wicksell effect, i.e. the divergence between the marginal productivity of capital and the interest rate, can be attributed to arevaluation of the capital stock, which occurs during capital accumulation. Revaluation is the result of a change in the wage rate — interest rate relationship brought about by differences in factor intensity. Such a development is — under constant production techniques and given production functions — inevitable when the capital stock changes.

The Wicksell Effect, Dewey, and Others: A Note

The Wicksell Effect, Dewey, and Others: A Note

The Wicksell Effects in Wicksell and in Modern Capital Theory

Research Article| June 01 1971 The Wicksell Effects in Wicksell and in Modern Capital Theory C. E. Ferguson; C. E. Ferguson Search for other works by this author on: This Site Google Donald L. Hooks Donald L. Hooks Search for other works by this author on: This Site Google History of Political Economy (1971) 3 (2): 353–372. https://doi.org/10.1215/00182702-3-2-353 Cite Icon Cite Share Icon Share Facebook Twitter LinkedIn MailTo Permissions Search Site Citation C. E. Ferguson, Donald L. Hooks; The Wicksell Effects in Wicksell and in Modern Capital Theory. History of Political Economy 1 June 1971; 3 (2): 353–372. doi: https://doi.org/10.1215/00182702-3-2-353 Download citation file: Zotero Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search Books & JournalsAll JournalsHistory of Political Economy Search Advanced Search The text of this article is only available as a PDF. Copyright © 1971 by Duke University Press1971 Article PDF first page preview Close Modal You do not currently have access to this content.

The Implications of Alternative Saving and Expectations Hypotheses for Choices of Technique and Patterns of Growth

Previous articleNext article No AccessThe Implications of Alternative Saving and Expectations Hypotheses for Choices of Technique and Patterns of GrowthDavid Cass, and Joseph E. StiglitzDavid Cass Search for more articles by this author , and Joseph E. Stiglitz Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 77, Number 4, Part 2Jul. - Aug., 1969Part 2: Symposium on the Theory of Economic Growth Article DOIhttps://doi.org/10.1086/259553 Views: 4Total views on this site Citations: 24Citations are reported from Crossref Copyright 1969 The University of ChicagoPDF download Crossref reports the following articles citing this article:Joseph E Stiglitz, Martin M Guzman The pandemic economic crisis, precautionary behavior, and mobility constraints: an application of the dynamic disequilibrium model with randomness, Industrial and Corporate Change 6 (Dec 2020).https://doi.org/10.1093/icc/dtaa056Marian Rizov, Sophia Davidova, Alastair Bailey Employment effects of CAP payments in the UK non-farm economy, European Review of Agricultural Economics 45, no.55 (Apr 2018): 723–748.https://doi.org/10.1093/erae/jby008Joseph E Stiglitz Where modern macroeconomics went wrong, Oxford Review of Economic Policy 34, no.1-21-2 (Jan 2018): 70–106.https://doi.org/10.1093/oxrep/grx057Joseph E. Stiglitz Unemployment and Innovation, SSRN Electronic Journal (Jan 2015).https://doi.org/10.2139/ssrn.2585160M. Ali Khan, Tapan Mitra Discounted optimal growth in a two-sector RSS model: a further geometric investigation, (Mar 2013): 39–70.https://doi.org/10.1007/978-4-431-54324-4_2Boyan Jovanovic, Yuri Yatsenko Investment in vintage capital, Journal of Economic Theory 147, no.22 (Mar 2012): 551–569.https://doi.org/10.1016/j.jet.2010.10.017M. Ali Khan, Adriana Piazza The Concavity Assumption on Felicities and Asymptotic Dynamics in the RSS Model, Set-Valued and Variational Analysis 19, no.11 (Oct 2010): 135–156.https://doi.org/10.1007/s11228-010-0168-2M. Ali Khan, Adriana Piazza On the non-existence of optimal programs in the Robinson–Solow–Srinivasan (RSS) model, Economics Letters 109, no.22 (Nov 2010): 94–98.https://doi.org/10.1016/j.econlet.2010.08.010M. Ali Khan, Alexander J. Zaslavski On two classical turnpike results for the Robinson–Solow–Srinivasan model, (Jan 2010): 47–97.https://doi.org/10.1007/978-4-431-99490-9_3Pedro Garcia Duarte Beyond Samuelson's Chapter on Ramsey, SSRN Electronic Journal (Jan 2010).https://doi.org/10.2139/ssrn.1677463M. ALI KHAN, TAPAN MITRA OPTIMAL GROWTH IN A TWO-SECTOR RSS MODEL WITHOUT DISCOUNTING: A GEOMETRIC INVESTIGATION, The Japanese Economic Review 58, no.22 (Jun 2007): 191–225.https://doi.org/10.1111/j.1468-5876.2007.00352.xM. Ali Khan, Tapan Mitra On choice of technique in the Robinson-Solow-Srinivasan model, International Journal of Economic Theory 1, no.22 (Jun 2005): 83–110.https://doi.org/10.1111/j.1742-7363.2005.00007.x Simon Gilchrist and John C. Williams Putty‐Clay and Investment: A Business Cycle Analysis Gilchrist and Williams, Journal of Political Economy 108, no.55 (Jul 2015): 928–960.https://doi.org/10.1086/317673Gareth P Green, David L Sunding Designing environmental regulations with empirical microparameter distributions: the case of seawater intrusion, Resource and Energy Economics 22, no.11 (Jan 2000): 63–78.https://doi.org/10.1016/S0928-7655(99)00011-1John C. C. Williams, Simon Gilchrist Investment, Capacity, and Output: A Putty-Clay Approach, SSRN Electronic Journal (Jan 1999).https://doi.org/10.2139/ssrn.148573Yannis M. Ioannides, Bart Taub On dynamics with time-to-build investment technology and non-time-separable leisure, Journal of Economic Dynamics and Control 16, no.22 (Apr 1992): 225–241.https://doi.org/10.1016/0165-1889(92)90032-AJames H. Gapinski Technical progress, factor substitutability and models of production: II, De Economist 122, no.66 (Nov 1974): 521–543.https://doi.org/10.1007/BF01371996David Newbery The importance of malleable capital in optimal growth models, Journal of Economic Theory 5, no.11 (Aug 1972): 21–41.https://doi.org/10.1016/0022-0531(72)90116-0M.A. King Taxation and investment incentives in a vintage investment model, Journal of Public Economics 1, no.11 (Apr 1972): 121–147.https://doi.org/10.1016/0047-2727(72)90022-9 REFERENCES AND BIBLIOGRAPHY, (Jan 1972): 269–296.https://doi.org/10.1016/B978-0-12-691650-8.50009-3Sheng Cheng Hu Comparative analysis for the Akerman-Wicksell model, Zeitschrift für Nationalökonomie 31, no.3-43-4 (Sep 1971): 331–346.https://doi.org/10.1007/BF01289832John A. Carlson Technical Change and the Pied Piper, Applied Economics 3, no.11 (Jul 2006): 47–56.https://doi.org/10.1080/00036847100000023Hanns Abele Über geldwirtschaftliche Wachstumsmodelle, Zeitschrift für Nationalökonomie 30, no.1-21-2 (Mar 1970): 125–158.https://doi.org/10.1007/BF01289994M. Ali Khan, Tapan Mitra Discounted optimal growth in the two-sector RSS model: a geometric investigation, (): 349–381.https://doi.org/10.1007/4-431-30899-7_14

Findlay's Robinsonian Model of Accumulation: A Comment

Professor Findlayl has set out the formal relations of the model in my Accumulation of Capital more succinctly than I was able to do. He shows how Harrod's truism-g=s/v-can be elaborated by making s (the share of saving in total net income) a function of the share of profit in income; and by showing that v-the ratio of the value of capital to total annual net income-is affected by a difference in the rate of profit even when technical coefficients are fixed, through the difference in the relative prices of capital goods and consumer goods which it brings about, one way or the other, except in the case where the capital/labour ratio happens to be the same for both groups of products. (The latter case is sometimes described as a neutral Wicksell effect ; the case where given capital goods have a higher value in terms of consumer goods at a lower rate of profit, as a positive Wicksell effect , since this is what Wicksell himself regarded as normal; and the converse case, as a negative Wicksell effect .) He shows that introducing the second complication without the first upsets the apple cart, for, when the capital/labour ratio is higher for the production of capital equipment than for consumption goods, a lower rate of profit is associated with a lower cost of given capital goods (a negative Wicksell effect) and consequently may entail a lower capital/ output ratio in value terms for a more capitalistic , that is, more highly mechanised, technique of production. Thus v in the formula not only fails to measure capital but may actually move in the opposite sense; the generalisation that a higher ratio of saving to total income necessarily tends to lead to greater capital intensity is shown to be invalid. All this is very neatly expressed, but the model has been formalised in such a way as to deprive it of significance. It seems ungracious to complain of a reader who has taken so much trouble on my behalf, but perhaps it might be useful to any other readers that I may have to explain how my own ideas about my model differ from his. Findlay has emptied causality out of the model by standing it on its head. He bases his interpretation on an Accumulation Function according to which the level of the real-wage rate (modified by technical conditions and the propensity to consume of capitalists) determines the rate of accumulation of capital. This is all very well in a Ricardian world where the wage rate is fixed in terms of corn. Technical conditions in the production of corn then determine the rate of profit

The Rate of Interest and the Marginal Product of Capital

Previous articleNext article No AccessThe Rate of Interest and the Marginal Product of CapitalLloyd A. MetzlerLloyd A. Metzler Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Journal of Political Economy Volume 58, Number 4Aug., 1950 Article DOIhttps://doi.org/10.1086/256961 Views: 32Total views on this site Citations: 8Citations are reported from Crossref Copyright 1950 The University of Chicago PressPDF download Crossref reports the following articles citing this article:Carlo Milana Refuting Samuelson’s capitulation on the re-switching of techniques in the Cambridge capital controversy, The Review of Austrian Economics 46 (Aug 2022).https://doi.org/10.1007/s11138-022-00591-yRobert E. Kohn A capital budgeting model of the supply and demand for loanable funds, Journal of Macroeconomics 12, no.33 (Jun 1990): 427–436.https://doi.org/10.1016/0164-0704(90)90006-VJ. E. Woods Notes on capital theory: a comment on ‘the economic basis of interest rates’, Journal of the Institute of Actuaries 116, no.11 (Apr 2012): 109–126.https://doi.org/10.1017/S0020268100036477Donald J. Harris Profits, Productivity, and Thrift: The Neoclassical Theory of Capital and Distribution Revisited, Journal of Post Keynesian Economics 3, no.33 (Nov 2015): 359–382.https://doi.org/10.1080/01603477.1981.11489229Bo Sandelin Wicksell's Missing Equation, the Production Function, and the Wicksell Effect, History of Political Economy 12, no.11 (Mar 1980): 29–40.https://doi.org/10.1215/00182702-12-1-29 Ronald Findlay An "Austrian" Model of International Trade and Interest Rate Equalization, Journal of Political Economy 86, no.66 (Oct 2015): 989–1007.https://doi.org/10.1086/260725Bo Sandelin The Wicksell Effect, Dewey, and Others: A Note, History of Political Economy 7, no.11 (Mar 1975): 123–131.https://doi.org/10.1215/00182702-7-1-123C. E. Ferguson, Donald L. Hooks The Wicksell Effects in Wicksell and in Modern Capital Theory, History of Political Economy 3, no.22 (Jun 1971): 353–372.https://doi.org/10.1215/00182702-3-2-353