Quarterly Journal of Austrian Economics
The Marginal Efficiency of Capital: Rejoinder
Volume 18, Number 1 (Spring 2105)
ABSTRACT: What Engelhardt calculates in his comment is not the Marginal Efficiency of Capital. Engelhardt incorrectly ranks investment projects by Present Value instead of Net Present Value. Engelhardt does not prove that Keynes has a wealth maximizing theory of investment, so his comment is not a successful defense of Keynes’s theory.