We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
INVESTMENT REPERCUSSIONS.
- Authors
Lachmann, L.M.
- Abstract
The article discusses elements of modern theory of investment and its scope for growth in the immobility situation of heterogeneous capital resources. The modem theory of investment, set forth by Lord Keynes is a general theory of investment in this realm, but it still has a number of weak points. Conceiving of investment as simple growth of a stock of homogeneous capital, it is ill equipped to cope with situations in which the immobility of heterogeneous capital resources imposes a strain on the economic system. At closer inspection, the theory of investment contains a micro-economic element, the theory of the Investment Decision, and a macro-economic element, exemplified in the Multiplier. The marginal efficiency schedule for the economic system as a whole is found as the sum of all the individual schedules in precisely the same way as the supply schedule of an industry is found as the sum of the supply schedules of individual firms. It would thus appear that there is scope for a study of the effects of investment on investment decisions.
- Subjects
INVESTMENTS; THEORY; INVESTMENT analysis; INDUSTRIAL efficiency; KEYNES, John Maynard, 1883-1946; FINANCE
- Publication
Quarterly Journal of Economics, 1948, Vol 62, Issue 5, p698
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883467