The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Wicksell Effects

  • Edwin Burmeister
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1394

Abstract

In realistic economic models with n different types of capital goods, the value of the capital stock iswhere Pi is the price of the ith capital good in terms of some numéraire. The value of capital, however, is not an appropriate measure of the ‘aggregate capital stock’ as a factor of production except under extremely restrictive conditions. Wicksell (1893, 1934) originally recognized this fact, which subsequently was emphasized by Robinson (1956).

Keywords

Capital deepening Capital goods Capital theory Capital theory paradoxes Numeraire Production possibility frontier Wicksell effects Wicksell, J. G. K. 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Edwin Burmeister
    • 1
  1. 1.