Index

action, 31–32

competitive vs. complementary, 32

dependence on rules, 42–43

predictability, 38–39, 42, 45

Ahiakpor, James W. C., 56, 243

Alchian, Armen, 158, 159, 243

Arthur, W. Brian, 40, 144, 243

asset specificity, 158–159

Austrian School, 23, 49, 64, 98

Austrian theory of the business cycle, 126

average period of production, 63–78

Baetjer, Howard, xii, 175, 194, 195, 243, 252

Bartley, William Warren, III, 225, 227–230, 234, 243

Barzel, Yoram, 159, 243

Becker, Gary, vii, 12, 17, 193, 196, 197, 201–203, 205–207, 209, 210, 212–218, 220, 222–224, 243

Bergson, Henri, 36, 244

Bierman, Leonard, 145, 244

Blaug, Mark, 88, 244

Bluedorn, Allan C., 145, 244

Boettke, Peter, viii, 162, 244

Böhm-Bawerk, Eugen von, 5, 9, 11, 49, 57, 61, 63–71, 73–78, 79, 80, 88, 89, 92, 93, 95, 96, 97, 110, 112–114, 126, 127, 141–143, 147, 189, 213, 215, 240, 244, 247, 248

Buchanan, James M., 144, 244

budget, 46–47, 188–192

capital

capital accumulation, 14, 54, 55, 56, 59, 67, 74, 77, 86, 117, 123, 138–139, 142–145, 149, 207, 214, 217, 230, 239, 240, 255

capital goods, 3, 48, 52, 53, 60–67, 72, 76, 102, 104, 105, 113, 117–119, 121, 129, 131–134, 136, 138, 143, 169, 175, 181, 185, 193, 238

capitalist economy, xi, 5, 7, 51, 58, 59, 64, 72, 122, 148, 177, 186, 238

capital stock, 5, 6, 54–58, 64, 65, 72–74, 76, 91, 95, 103, 104, 126, 128, 129, 131, 132, 142, 157, 169, 189, 237, 238

capital structure, xi, 3, 11, 60, 62, 71, 72, 73, 126–128, 130, 131, 134–142, 144–146, 147, 151, 156, 166, 169, 172–173, 188, 189, 190, 193, 216, 238, 239, 241, 250

capital theory, vii, xi, xii, 4–7, 10, 11, 19, 49, 51, 53, 54, 63–64, 69, 78, 79, 88, 91, 93, 95, 96, 110, 113, 120, 121, 123, 125, 126, 127, 128, 130, 139, 144, 148, 163, 189, 200, 209, 213, 216, 237, 243, 250, 251, 252, 255, 257

human capital, vii, 3, 11, 12, 33, 85, 86, 155, 169, 175, 182, 192, 193–200, 201–224, 225–226, 230, 231, 233–235, 239, 241, 243, 248

Chandler, Alfred, 151, 166, 172, 244

Chen, Ping, 144, 245

children, 220–221

Chiles, Todd H., 145, 244

Clark, John Bates, 5, 70, 71–73, 244

Coase, Ronald, 148, 158, 244

Cockshott, W. Paul, 186, 245

Collis, David S., 148, 244

constant returns to scale (CRS), 10, 81–84, 152, 170

constrained maximum, 15, 17

convergence to equilibrium, 22, 24, 26–30, 40, 42, 86

Cottrell, Allin, 186

Currie, Martin, 31, 35, 37–38, 245

Dahlman, Carl, 158, 245

Day, Richard H., 144, 245

Demsetz, Harold, 148, 159, 163, 243, 245

discounted marginal value product (DMVP), 118

disequilibrium, xii, 8, 11, 13, 24, 25, 28, 29, 31, 34, 45, 46, 48, 50, 51, 104, 120, 129, 131, 132, 133, 135, 138, 139, 194, 223, 233, 234, 235, 238, 252

division of labor, 9, 11, 55, 56, 67, 141, 142, 145, 168–171, 178, 182, 185–187, 211, 213–218, 220–224

divorce, 222–223

Dolan, Edwin G., 23, 245, 249, 250

Dorfman, Robert, 73, 245

Douglas, Cobb, 80

Drucker, Peter F., 175, 245

Ebeling, Richard M., viii, 39, 79, 245, 255

endogenous change, 10, 27–29, 154, 217, 219, 221, 246

Endogenous Growth Theory, 81–84

equilibrating tendencies, 7, 13, 27

and Austrian economics, 7

”long-run” stationary state, 9, 59

equilibrium, 8

absence of, 14

as a ”balance of forces”, 16, 17

as a result of plans, 32

definition, 13, 15–18

effect of time, 21, 26

empirical nature, 23

general equilibrium, 15

equilibrium (cont.)

implications of, 19–21

individual vs. system, 20

intertemporal equilibrium, 16, 21

micro and macro, 20

momentary equilibrium, 17

partial equilibrium, 15

static equilibrium, 15

supply and demand, 16

temporary equilibrium, 16

tendency toward, 14, 25, 36

volitional aspect, 18

equilibrium price, 28–30

market-clearing price, 24

price discrepancies, 28, 47

supply and demand, 29

Evans-Pritchard, Edward E., 44, 245

evenly rotating economy (ERE), 117–119

exogenous change, 28–30, 80, 87, 89, 206, 219

Faber, Malte, 70, 94, 110, 113, 245, 254

Fetter, Frank A., 78, 112–114, 115

firm, vii, 2, 11, 86, 99, 100, 120, 123, 126, 135, 137, 141, 145, 148, 149, 151–175, 177–185, 189, 192, 196, 197, 200–206, 213, 215, 218, 223, 235, 238, 243, 244, 245, 246, 251, 252, 253, 254, 256, 257

Foss, Nicholai J., 126, 246

Garrison, Roger W., viii, 62, 73, 110, 112, 246

Goleman, Daniel, 210, 246

Greening, Daniel W., 145, 244

growth theory, 11, 53, 74, 78, 80, 81, 88, 89, 93, 217, 246, 256

Gupta, Vishal K., 145, 244

Hahn, Frank H., 19, 246

Harcourt, Geoffrey C., 88, 246

Harper, David A., viii, 226, 246

Hausman, Daniel, 76, 247

Hayek, Friedrich A., xii, 8, 11, 13, 14, 18–24, 26, 27, 31, 34, 42, 44, 45, 48, 70, 71, 73, 74, 78, 88, 95, 96, 98, 105, 119, 123, 126–131, 139, 145, 147, 149, 160, 164, 165, 177, 178, 189, 193, 195, 215, 231–233, 240, 247, 250, 252, 253, 255, 256

definition of equilibrium, 8, 13, 14, 18, 27

effect of time on equilibrium, 21

Monetary Theory and the Trade Cycle, 126

Prices and Production, 126

The Pure Theory of Capital, 126

equilibrium tendencies, 22

existence of equilibrium, 22

individual and system equilibrium, 20

Hennings, Klaus H., 63–65, 74, 247

Hicks, John R., 10, 21, 49, 53, 54, 57, 90, 92, 93–107, 156, 180, 184, 188, 190, 216, 248, 250, 252

Capital and Growth, 93

Capital and Time, 93, 95, 96

Pure Theory of Capital, 11

Value and Capital, 93

Fundamental Theorem, 100–101, 106

intertemporal equilibrium, 21

neo-Austrian approach, 10

Hodgson, Geoffrey M., 144, 248

Hoff, Tigre J., 177, 248

Horwitz, Steven, viii, 27, 40, 41, 177, 178, 187, 188, 223, 244, 248

human capital, see capital

Hume, David, 211

interest, 109–120

internal rate of return (IRR), 99, 101, 102, 106–107, 197

Jevons, William Stanley, 57, 127

joint production, 156

Keynes, John Maynard, 4, 7, 94, 126, 129, 137, 253

Kirzner, Israel, M., viii, xii, 8, 13, 17, 23–28, 40, 78, 88, 91, 105, 110, 112, 113, 115, 116, 126, 129, 139, 145, 231, 245, 249, 256, 257

definition of disequilibrium, 24

Klein, Peter, 179, 249

Knight, Frank H., 5, 70–73, 249

Knowledge capital, 3, 225–236

informative content, 227, 228

logical content, 227, 228

objective content, 227

Kregel, Jan A., 53, 59, 64, 249

Kresge, Stephen, 131, 250

Krugman, Paul, 40, 221, 250

Kuhn, Thomas S., 230

Lachmann, Ludwig M., vii, xi, xii, 11, 13, 16, 23–28, 35, 37, 40, 41, 43, 53, 54, 59, 73, 78, 94, 95, 99, 105, 116, 123, 126, 127, 128, 130–146, 147, 149, 150, 151, 156, 159, 162, 166, 170, 171, 173, 194, 200, 213, 215, 216, 240, 250, 251, 252, 257

Capital and its Structure, 131–146

Lachmann’s axiom, 26, 27, 35, 43, 162

Laing, N. F., 88, 246

Lakatos, Imre, 230

Langlois, Richard, 123, 147, 153, 158, 160, 161, 163, 164, 165, 166, 167, 171, 172, 251

Lavoie, Donald C., viii, 177, 189, 194, 230–233, 250, 251

Leijonhufvud, Axel, 167–171, 173, 251

Lewin, Peter, xii, 3, 13, 23, 26, 32, 35, 79, 93, 110, 114, 127, 130, 131, 175, 177, 194, 223, 248, 251, 252

Liebowitz, Stan J., 40, 252

Lindahl, Erik, 35, 252

Loasby, Brian, 42, 123, 155, 156, 174, 246, 252

Lucas, Robert E., 80, 85, 252

Lutz, Friedrich A., 74, 76, 79, 252

Machlup, Fritz, 15, 19, 20, 252

Maclachlan, Fiona C., 113, 253

Malthus, Thomas, 59, 219, 220, 221

Margolis, Stephen E., 40, 252

market-clearing price, 24

marriage, 222–223

Marshall, Alfred, 24, 123, 126, 135, 148, 202, 209, 246, 253

Marx, Karl, 171, 254

Masten, Scott E., 158, 253

McMullen, Jeffrey, 145, 244

measurement cost approach, 159

Menger, Carl, 9–11, 40, 49, 60–65, 71, 73, 92, 95–97, 123, 125–127, 129, 147, 164, 185–187, 213, 214, 248, 253, 257

Time Structure of Production, 60–63

Mincer, Jacob, 12, 206, 219, 253

Minkler, Alanson P., 174, 253

Mises, Ludwig von, 11, 32, 34, 46, 47, 78, 110, 112–114, 115, 126, 129, 157, 177, 178, 179, 185–189, 207, 246, 248, 249, 250, 252, 253, 254

modern growth theory, 74, 80

Montgomery, Cynthia A., 148, 244

multiple specificity, 134, 145, 159, 162, 202

Murphey, Kevin, 193, 214–217, 243

Nelson, Robert R., 164, 253

neo-Austrian, 10, 93, 248, 250

neo-Ricardian, 9, 10, 19, 49, 59, 76, 78, 79, 88–91, 92, 101, 102, 147

net present value (NPV), 98–99

Nonaka, Ikujiro, 175, 231, 253

O’Driscoll, Gerald P., 20, 27, 28, 34, 246, 254, 255

Oi, Walter, 203, 254

On the Principles of Political Economy and Taxation, 9

Orosel, Gerhard O., 70, 254

Pellengahr, Ingo, 110, 114

Penrose, Edith T., 11, 123, 147, 149, 154–156, 162, 170, 172, 254

Polanyi, Michael, 160, 195, 230, 254

Popper, Karl, 195, 226, 229, 230, 234, 240, 254

price

as a measure of worth, 46

as a mode of calculation, 46

as a social institution, 46

changes in, 47

discrepancies, 28, 47

effects within disequilibrium, 46

processes of convergence, 40–43

”production function” approach to capital, 9, 79–92

capital intensity, 89, 101

capital reversing, 89

challenge to, 88–91

complete production function, 82

constant returns, 10

diminishing returns, 10, 56, 89

endogenous change, 10, 27, 28

Endogenous Growth Theory, 81–84

limitations, 86–88

partial production function, 83

technological change, 10

profit, 10, 50, 117–120

prospective profits, 183–184

retrospective profits, 180–183

Pure Theory of Capital, 11, 126

Pure Time Preference Theory (PTPT), 10, 109–117

Ramsay-Steele, David, 177, 254

Ricardo, David, 5, 9, 49, 54, 57–60, 62–64, 73, 75, 92, 93, 96, 123, 147, 254

Richardson, George B., 11, 123, 149–154, 155, 156, 162, 172, 246, 254

Rizzo, Mario J., viii, 20, 23, 26–28, 34, 36, 246, 254, 255, 257

Robertson, Paul L., 153, 158, 160, 161, 163, 166, 167, 251

Robinson, Joan, 79, 255

Romer, Paul M., 80, 81, 83, 85, 255

Rosen, Sherwin, 204, 255

Rothbard, Murray, 78, 110, 112–114, 117, 118–119, 126, 179, 245, 246, 252, 255

roundabout methods of production, 9, 11, 52, 61, 62, 65–68, 70, 74, 78, 97, 113, 126, 142–144, 147, 189, 213, 215, 217, 240, 248

Salerno, Joseph, viii, 157

Samuelson, Paul A., 90, 255

Schultz, Theodore W., 12, 196, 214, 216

Schumpeter, Joseph Alois, xii, 128, 134, 147, 256

Scully, Gerald W., 88, 256

Selgin, George A., 40, 256

Shackle, George L. S., 25, 250

Shmanske, Steven, 17, 18, 256

Simon, Herbert, 231

Smith, Adam, 8, 9, 11, 49, 51, 53–58, 74, 75, 91, 93, 123, 140, 142, 145, 167–169, 171, 197, 211, 213, 214–216, 256

corn economy, 53–57, 74, 140, 145

Solow, Robert, 80, 83, 84, 87, 256

Sorokin, Pitirim A., 37, 38, 256

specific human capital, 195

Sraffa, Pierro, 57, 79, 256

steady-state economics, 9, 103–104, 117

Steedman, Ian, 31, 35, 37–38, 245

Steele, Gerhard R., 143, 177, 254, 256

Stiglitz, Joseph E., 19, 256

Takeuchi, Hirotaka, 175, 231, 253

technical information, 150

Teece, David, 123, 148, 166, 256

theory of the firm, see firm

time, 60–63, 66, 70, 71, 73, 75, 91, 94–96

Treatise on the Family, A, 219

Tuggle, Christopher, 145, 244

Uniform Rate of Profit, 57–60

Vanberg, Victor, 164, 257

Vaughn, Karen, viii, 26, 257

Vroman, Jack J., 184, 257

Wealth of Nations, 8, 213

Wenar, Leif, 131, 250

Whitehead, Alfred North, 232, 257

Wicksell, Knut, 79, 96, 127

Wieser, Friedrich von, 129

Williamson, Oliver E., 123, 148, 160, 174, 231, 243, 245, 253, 255, 257

Winter, Sidney G., 148, 160, 164, 245, 253, 255, 257

women in the workforce, 218–222

Woodward, Susan, 158, 243

Wyotinsky Lectures, 210

Yeager, Leland B., 88, 90, 110, 257

Yoon, Yong J., 144, 244

Capital in Disequilibrium