Studies in Austrian Capital Theory, Investment, and Time

1. Front Matter

   Pages I-VI

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2. Summary of the Papers

   1. Summary of the Papers

      • Malte Faber

      Pages 1-9

3. Historical Perspectives

   1. Front Matter

      Pages 11-11

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   2. On the Development of Austrian Capital Theory

      • Malte Faber

      Pages 12-43

   3. Relationships between Modern Austrian and SRAFFA’s Capital Theory

      • Malte Faber

      Pages 44-59

   4. Austrians versus Austrians I: A Subjectivist View of Interest

      • Ingo Pellengahr

      Pages 60-77

   5. Austrians versus Austrians II: Functionalist versus Essentialist Theories of Interest

      • Ingo Pellengahr

      Pages 78-95

4. Modern Austrian Capital Theory

   1. Front Matter

      Pages 97-97

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   2. Finite Horizon

      1. A Neo-Austrian Two-Period Multisector Model of Capital

         • Peter Bernholz, Malte Faber, Winfried Reiss

         Pages 98-112

      2. Own Rates of Interest in a General Multisector Model of Capital

         • W. Reiss, M. Faber

         Pages 113-131

   3. Infinite Horizon

      1. A Neo-Austrian Approach to the Open-Endedness of the Future: An Overview

         • Gunter Stephan

         Pages 132-143

      2. Neo-Austrian Characterization of Proportional Prices with Positive Rate of Interest Relative to the Growth Rate

         • Malte Faber, Gunter Stephan

         Pages 144-153

      3. Roundaboutness, Nontightness and Malinvaud Prices in Multisector Models with Infinite Horizon

         • Gunter Stephan

         Pages 154-172

      4. Competitive Finite Value Prices: A Complete Characterization

         • Gunter Stephan

         Pages 173-183

5. Time, Irreversibility and Investment: Extensions of Traditional Approaches

   1. Front Matter

      Pages 185-185

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   2. Time and Production: Period versus Continuous Analysis

      • Franz-Josef Wodopia

      Pages 186-194

   3. Flow and Fund Approaches to Irreversible Investment Decisions

      • Franz-Josef Wodopia

      Pages 195-207

6. Dynamic Games with Macroeconomic Investment

   1. Front Matter

      Pages 209-209

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   2. On the Methodology of Strategic Interaction in Time

      • Malte Faber, Werner Güth, Gunter Stephan, Ernst-Ludwig von Thadden

      Pages 210-228

   3. A Dynamic Game with Macroeconomic Investment Decisions Under Alternative Market Structures

      • Werner Böge, Malte Faber, Werner Güth

      Pages 229-258

The neglect of time in general and of the time structure of production in particular in mainstream economics led to the rebirth of the Austrian tradition in the seventies. The names of BERNHCLZ, HICKS, KIRZNER and VON WEIZSACKER are representative of different approaches. In 1979 my "Introduction to Modern Austrian Capital Theory" appeared, in which I unified various papers BERNHOLZ and I had written. I also linked our approach to those of VON NEUMANN, of HICKS and of neoclassical capital theory. These "Studies" supplement and continue my "Introduction" in various ways. With all the authors of the present volume I have cooperated for several years. This volume is subdivided into five parts. The first one, Historical Perspectives, gives first an outline on the development of Austrian capital theory from its origins to the present. Next it relates Modern Austrian Capital Theory to SRAFFA's theory and to the Austrian subjectivists' pure time preference theory of interest. The latter theory is represented in its opposition to the traditional productivity-cum-time preference explanation of interest, which is. common t9 neoclassical and BOHM-BAWERKian capital theory alike. The Austrian subjectivist pure time preference theory has been misinterpreted in its recent presentation, which has led to misunderstandings. It is shown that there is no real contradiction between the two appoaches.

• development
• economics
• growth
• investment
• macroeconomics
• market structure
• production
• productivity
• value-at-risk

• Alfred-Weber Institut für Sozial- und Staatswissenschaften, Universität Heidelberg, Heidelberg, Germany

  Malte Faber

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