In the Cambridge Capital Controversy, critics associated with Cambridge, UK, attack the logical coherence of neoclassical theory and claim to outline an alternative approach to economics. The most prominent neoclassical economists responding to the controversy acknowledge that many models in the...

This article demonstrates certain doctrines of the Austrian school of economics are untenable. The focus is on certain aspects of capital theory undergirding Austrian Business Cycle theory. Other criticisms of Austrian Business Cycle Theory from Cambridge-Italian economists are briefly surveyed....

This note presents two numerical examples, in a model with two techniques of production, of a switch point with a real Wicksell effect of zero. The variation in the technique adopted, at the switch point, leaves employment and the value of capital per unit net output unchanged. This invariant...

This paper illustrates, through a numerical example of reswitching under oligopoly, the existence of implications from the Cambridge Capital Controversy for the theory of industrial organization. Oligopoly is modeled by given and persistent ratios in rates of profits among industries, as...

This paper presents the results of an empirical exploration of data from countries worldwide. Income distribution, as associated with the system of prices of production, fails to describe many economies. Economies in most countries or regions lie near their wage-rate of profits frontier, when...

This paper presents a neoclassical overlapping generations model in which the rate of growth is positive, income distribution does not become more unequal in a steady state, and the real rate of return on wealth exceeds the rate of growth. The existence of two assets in the model distinguishes...

Thomas Piketty claims that when the rate of return on wealth exceeds the rate of growth, income inequality increases. This paper builds on previous research in the literature to demonstrate the incorrectness of Piketty's thesis and to suggest an amendment to it. A neoclassical overlapping...

The choice of technique can be analyzed, in a circulating-capital model of prices of production, by constructing the wage frontier. Switch points arise when more than one technique is cost-minimizing for a specified rate of profits. This article defines four normal forms for structural...