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A Formal Model in Hayekian Macroeconomics: The Proportional Goods-in-Process Structure of Production

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Tags Production Theory

07/30/2014Renaud Fillieule

Volume 10, No. 3 (2007)

 

Most of the economists of the Austrian School use straightforward representations of the Hayekian structure of production. Even though these depictions are helpful in order to visualize the most basic features of growth and cycle theories in the Austrian tradition, a more detailed formalization is necessary in order to deal with more difficult and subtler problems. The model developed in this paper permits, in the case of a proportional goods-in-process structure, (1) to calculate the macroeconomic values characterizing all the stages of a structure in static equilibrium, (2) to illustrate a structure and to visualize the distribution of the added value between wages and interest, (3) to demonstrate a series of mathematical formulas describing the structure (and for the first time a very simple formula for the average length of a structure: λ = I(1+ i)/C), and (4) to analyze the complex dynamic changes that occur in the rates of return and the investments at different stages when the contour of a structure changes.

Author:

Renaud Fillieule

Renaud Fillieule est enseignant en sociologie à l'université de Lille 1 et membre du laboratoire de recherche du CLERSE. Il a obtenu un diplôme d'ingénieur obtenu à l'Ecole Centrale de Lyon. Ensuite, il a poursuivi ses études en philosophie (maîtrise à Paris IV en 1988), en prolongeant des études en économie (DEA à Paris I en 1992) et en sociologie (thèse de doctorat à Paris IV en 1994). Ses travaux reflètent son intérêt pour ces différentes disciplines étudiées. Notamment, il porte une attention forte sur la question de la rationalité en sociologie, en anthropologie, en économie, en psychologie cognitive et en épistémologie.

Cite This Article

Fillieule, Renaud. "A Formal Model in Hayekian Macroeconomics: The Proportional Goods-in-Process Structure of Production." The Quarterly Journal of Austrian Economics 10, No. 3 (2007): 193–208.

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