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The author or concept searched is found in the following 3 entries.
| Disputed term/author/ism | Author |
Entry |
Reference |
|---|---|---|---|
| Capital | Kaldor | Rothbard III 497 Capital/Kaldor/Rothbard: Kaldor defined capital as a reproducible resource which it is economically profitable to produce. In that case, obsolete machines would no longer be capital goods. (Would they be “land”?) RothbardVsKaldor: The definition should be: physically reproducible resources. >Reproducibility/Rothbard, >Land/Rothbard, >Reproducibility/Hayek. RothbardVsHayek: Hayek: Hayek’s criticism that then the possibility of growing artificial fruit, etc., would make all land “capital” again misconceives the problem, which is one of the physical need and possibility of reproducing the agent. Since the basic land - not its fruit - needs no reproduction, it is excluded from the capital-good category. >Capital goods/Rothbard. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
| Full Employment | Kaldor | Harcourt I 210 Full Employment/Kaldor/Harcourt: Kaldor's assumption(1) of full employment has puzzled many people, for example, Riach [1969](2), and one wonders what is his objection to the Keynesian forces determining, simultaneously, both the level of economic activity and the distribution of income (even if the former were not to be a full-employment one). Indeed Japanese critics of neoclassical economics concentrate not on marginalism and maximizing, which, ironically in their custom-ridden society (and no more so than in the universities), they seem to be quite happy with, but on whether there is or is not full employment, regarding the latter as a neo-Keynesian stance: see, for example, Fukuoka [1969](3). Joan Robinson, for example, has sketched such a process as follows: In any given situation, with given productive capacity in existence, a higher rate of investment brings about a higher level of total gross income (through a higher level of employment of labour and utilization of plant) and a higher share of gross profit in gross income (by pushing up prices relatively to money-wage rates). Thus, within reason, investment generates the saving that it requires. (Robinson [1965b](4), p. 177.) >Wages, >Production, >Investments. The following simple model illustrates these ideas, arrives at Kaldor's results as well (and may also suggest why Kaldor took the stance that he did). There is a very simple utilization function Y = L / l (5.6) where Y is some measure of real output, L is employment and l is the (constant) labour input per unit of output. Harcourt I 211 (This is the simplest compromise between the diminishing short-run marginal productivity of theory and the increasing one of fact.) >Marginal productivity. Because this is a Keynesian model in which the direction of causation is Y > L, we write expression (5.6) as L = IY (5.7) The money wage rate, wm, may be taken as given in any short period. (It will, of course, change from short period to short period, the outcome of collective bargaining or compulsory arbitration in which experienced rates of price inflation and overall productivity growth and levels of economic activity will play key roles.) i.e. (5.8) wm = w^m The general price level we take to be a simple function of the level of planned investment expenditure, say (5.9) p = λl where p is a price index, the base of which corresponds to the prices in which Y is measured, and λ is a constant. >Economic growth, >Price level. Prices/wages: This is the simplest way to express the rise in prices relative to money wages associated with a rise in investment expenditures. >Price. Investments: The businessmen who make the investment decisions, i.e. set the level of l, may also be the principal price-makers, via price leadership, in the economy. (We may suppose their numbers to be relatively constant and that the bulk of the sum of the separate investments which constitute l, even if not the bulk of the decision-makers, are associated with those who are also price-leaders.) If, then, the level of l is, in part, an index of the current state of their confidence, it may also be a proxy for the profitmargins that they wish to set and feel that they can get away with. This view seems all the more reasonable if we posit as well a longer-run link between profits arrived at and investment plans which are internally financed. Profits: Money profits (∏m) are (5.10) ∏m = pY - w^mL = pY - w^m l Y = (M-w^m l) Y As we end up assuming that sw = 0, i.e. that the net saving of wageearners is zero, we may as well start with this assumption. (It is often justified by saying that after we abstract from net personal investment, for example, in housing, sw is zero for wage-earners as a whole: see Kaldor [1966](1), p. 316.) Harcourt I 212 The saving function therefore is (5.11) Sm = sk∏m = sk(λl – w^ml) Y where all values are in money terms. The equilibrium condition is (5.12a) Sm = p l i.e. (5.12b) sn(λl-w^ml)Y = λl2 from which it follows that the equilibrium value of Y, Ye (which is not necessarily the full-employment one), is (5.13) Ye = λl2 / sk (λl - w^ml) (≤ Yf) Expression (5.13) may be the reason why Kaldor assumed full employment. (PasinettiVsKaldor). > 1. Kaldor, N. [1966] 'Marginal Productivity and the Macro-Economic Theories of Distribution', Review of Economic Studies, xxxm, pp. 309-19. 2. Riach, P. A. [1969] 'A Framework for Macro-Distribution Analysis', Kyklos, XXH, pp. 542-65. 3. Fukuoka, Masao [1969] 'Monetary Growth a la Keynes', Keio Economic Studies, vi, pp. 1-9. 4. Robinson, Joan [1965b] Collected Economic Papers, Vol. Ill (Oxford: Basil Blackwell). |
Harcourt I Geoffrey C. Harcourt Some Cambridge controversies in the theory of capital Cambridge 1972 |
| Reproducibility | Rothbard | Rothbard III 497 Reproducibility/Rothbard: We are attempting to classify physical goods here, not to discuss their possible values, which will fluctuate continually. The point is that the resources subject to depletion cannot be replaced, much as the owner would like to do so. They therefore earn a net rent.(1) >Land/Rothbard, >Rent/Rothbard. Land/Hayek: Hayek also raises the question whether a stream is “land” if a new stream can be created by collecting rain water. RothbardVsHayek: Here again, Hayek misconceives the issue as one of maintaining a “constant income stream” instead of classifying a physical concrete good. The stream is land because it does not need to be physically replaced. It is obvious that Hayek’s criticism is valid against Kaldor’s definition. Capital/Kaldor/Rothbard: Kaldor defined capital as a reproducible resource which it is economically profitable to produce. In that case, obsolete machines would no longer be capital goods. (Would they be “land”?) RothbardVsKaldor: The definition should be: physically reproducible resources. RothbardVsHayek: Hayek’s criticism that then the possibility of growing artificial fruit, etc., would make all land “capital” again misconceives the problem, which is one of the physical need and possibility of reproducing the agent. Since the basic land - not its fruit - needs no reproduction, it is excluded from the capital-good category. >Capital goods/Rothbard. 1. Net rents equal gross rents earned minus gross rents paid to owners of factors. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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