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A theory of overlapping generations of fixed capital

Abstract

Although economic science has a theory and a model of overlapping (uneven-aged) generations of a population, it lacks a similar theory for fixed capital. The authors of this article attempted to fill this gap. The basic prerequisites of the new theory and model are, first, the unjustly forgotten theory of the circulation and reproduction of capital and, second, evolutionary economic theory, according to which an economy is coordinated and ordered only in motion. This type of coordination is fundamentally different from that used in the economic mainstream. US statistics–based tests of the model have shown its realism.

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Correspondence to A. A. Rubinstein.

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Original Russian Text © V.I. Maevsky, S.Yu. Malkov, A.A. Rubinstein, 2016, published in Vestnik Rossiiskoi Akademii Nauk, 2016, Vol. 86, No. 1, pp. 56–65.

Academician Vladimir Ivanovich Maevsky is head of the Center for Evolutionary Economics at the RAS Institute of Economics (former RAS Institute of Economic and Political Studies). Sergei Yur’evich Malkov, Dr. Sci. (Eng.), is a leading researcher at the RAS Institute of Economics. Aleksandr Aleksandrovich Rubinstein, Cand. Sci. (Econ.), is a senior researcher at the same institute.

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Maevsky, V.I., Malkov, S.Y. & Rubinstein, A.A. A theory of overlapping generations of fixed capital. Her. Russ. Acad. Sci. 86, 39–47 (2016). https://doi.org/10.1134/S1019331616010019

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  • DOI: https://doi.org/10.1134/S1019331616010019

Keywords

  • fixed capital
  • theory of overlapping generations
  • capital circulation and reproduction theory
  • evolutionary economic theory