Capital Theory and DynamicsCapital theory and dynamics are cornerstones for almost every branch of economics. Except in a fictional world where the economies of yesterday, today, and tomorrow are identical, issues of capital formation and dynamic behaviour must always arise. Although the specialist literature is technically demanding, Professor Burmeister shows that its important results can be understood and their economic significance grasped by those who do not possess the "mathematical literacy" required to follow rigorous proofs. Even if future events are known with certainty, they still influence the current economic state. This is the pure role of time. That future events are not known with certainty adds another complexity. This book focuses mainly on the pure role of time. |
Contents
Introduction to dynamic economics | 38 |
40 | 70 |
Cambridge controversies in capital theory | 100 |
46 | 149 |
Properties of dynamic paths | 165 |
Descriptive and optimal models with | 213 |
Notes | 288 |
vii | 309 |
| 310 | |
| 323 | |
Other editions - View all
Common terms and phrases
alternative approach associated assume assumption beginning of period behavior Burmeister capital stocks Chapter commodity competitive conclusion condition consider consistent constant consumption convergent curve define definition denote derived determined discussed dynamic economic efficiency equal equation equilibrium example exist expectations fact feasible Figure finite function future given growth hence heterogeneous hold illustrated implies initial inputs interest interest rate intertemporal issue k₁ labor marginal maximization necessary Note observe optimal output P₁ paradoxical particular path period positive possible primary factor problem production production function profit properties proved quantity question ratio reader referred regular restrictive reswitching Rule saddlepoint satisfy simple solution stability steady-state steady-state equilibrium studied sufficient Suppose technique terminal theorem theory tion unique unit utility vector wage yields zero