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- Title
PROFESSOR KNIGHT'S CAPITAL THEORY: A NOTE IN REPLY.
- Authors
Boulding, K.E.
- Abstract
The article presents a commentary about capital theory. Production means not merely a physical process but a combined process of physical production and valuation. What one really produces, for him, is what one gets in exchange for his products. These are real products; not the things which one gives in exchange but the things which one gets. That is to say, production for him means not the production of physical things, goods or services, but the production of values. Now the period of production in the first instance is a property of a physical process of production. The inputs and outputs of any actual process will occur at specified dates, and it is not unreasonable in most cases to assume that the relative time positions of these dates will not be appreciably affected by the absolute date--say the date of beginning the process. In special cases the relations between capital, income, and interest are unusually simple--for example, the case of a perpetual income bought for a capital sum.
- Subjects
CAPITAL; INCOME; PRODUCTION (Economic theory); MICROECONOMICS; INTEREST (Finance); WEALTH
- Publication
Quarterly Journal of Economics, 1936, Vol 50, Issue 3, p524
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1882614