Economics Dictionary of Arguments

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 Capital Reversing - Economics Dictionary of Arguments
 
Capital reversing: Capital reversing refers to a paradox in capital theory where a lower interest rate leads to the adoption of more labor-intensive techniques instead of more capital-intensive ones. This challenges the neoclassical assumption that cheaper capital always increases capital intensity, impacting theories of income distribution and economic growth. See also Capital, Capital theory, Cambridge Capital Controversy, Reswitching.
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Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments.
 
Author Item    More concepts for author
Economic Theories Capital Reversing   Economic Theories
Harcourt, Geoffrey C. Capital Reversing   Harcourt, Geoffrey C.
Neoclassical Economics Capital Reversing   Neoclassical Economics

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Ed. Martin Schulz, access date 2025-04-30