Investment function in Marshall, Fisher and Keynes: a critique of the neoclassical theory of investment in light of the capital theory controversy.
An overwhelming majority of the economics profession is taught that there is an inverse relationship between interest rate and investment expenditures. In the light of the controversies in the theory of capital, we analyse in this article the way in which Marshall, Fisher and Keynes have constructed...
| Published in: | European Journal of the History of Economic Thought Vol. 31; no. 3; pp. 437 - 468 |
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| Format: | Article |
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Taylor & Francis Ltd
Jun2024
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| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=181053694&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 181053694 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 09672567 5B6 jtl: European Journal of the History of Economic Thought issn: 09672567 maglogo: N pubinfo: dt: Jun2024 vid: 31 iid: 3 pid: 377 pub: Taylor & Francis Ltd artinfo: ui: 181053694 10.1080/09672567.2024.2329052 ppf: 437 ppct: 31 formats: tig: atl: Investment function in Marshall, Fisher and Keynes: a critique of the neoclassical theory of investment in light of the capital theory controversy. aug: au: İnal, Vedit su: Interest rates Demand function Capital investments Professions sug: subj: Interest rates Demand function Capital investments Professions keyword: Capital controversy Fisher investment theory Keynes Marshall ab: An overwhelming majority of the economics profession is taught that there is an inverse relationship between interest rate and investment expenditures. In the light of the controversies in the theory of capital, we analyse in this article the way in which Marshall, Fisher and Keynes have constructed this inverse relationship. All three were aware of the problems associated with this construction and tried—albeit unsuccessfully—different ways to get around them. This implies that within the neoclassical analysis there does not exist a theoretically consistent conceptualisation of an investment demand function inversely responsive to the rate of interest. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 2024 holdings: @attributes: islocal: N |
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