RESWITCHING AND DECREASING DEMAND FOR CAPITAL

Fratini, Saverio M. (2009): RESWITCHING AND DECREASING DEMAND FOR CAPITAL.

Abstract

We consider a model of production with a continuum of linear techniques and examine the related choice of technique and shape of the demand for capital schedule. The primary conclusion regards the possibility of a decreasing demand for capital schedule combined with reswitching and reverse capital deepening.

• Item Type: MPRA Paper
• Language: English
• Keywords: Capital Theory, Linear Activities of Production, Theory of Value
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D46 - Value Theory; B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B21 - Microeconomics; D - Microeconomics > D3 - Distribution > D33 - Factor Income Distribution; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity

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