The Austrian Theory of Capital in Relation to Partial Equilibrium Theory

Abstract

Consideration of durable instruments does not impair the formal validity of the Austrian analysis, 118.—Capital from the point of view of the individual entrepreneur, 122. — Continuity of the production function, 123.— Derivation of time factors from the production function, 124. — Speed of turnover, 125.— Working capital, 129.— Discounted marginal productivity, 132. — Fixed capital, 134. — Cost of services of durable instruments, 135.— Effect of small changes in the rate of interest on the relative employments of rival and complementary factors, 138. — Effect on speed of turnover of capital behavior of relative prices, 149.