The Place of Money Capital in the Theory of Production

Abstract

I. Outline of the problem of capital and of the need to reconcile its treatment by Austrian and neoclassical theorists, as also to establish a link between economics and accountancy practice, 537. — II. Introduction to the concept of the money capital requirement function and the criteria of profit rate maximization, 540. — III. Synthesis of divergent theories by full development of a new generalized money capital requirement function, 544. — IV. Comparison of the results here obtained with those of neoclassical theory, 555. — V. Summary, 557. “Capital is not in the technical sense just another factor juxtaposited with the primary factors, but rather a new dimension on each of the primary factors.” (Ragnar Frisch.) 1