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RESWITCHING AND DECREASING DEMAND FOR CAPITAL
Author(s) -
Fratini Saverio M.
Publication year - 2010
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2010.04090.x
Subject(s) - economics , capital (architecture) , monotonic function , schedule , microeconomics , production (economics) , monetary economics , mathematical economics , keynesian economics , econometrics , macroeconomics , mathematics , mathematical analysis , management , archaeology , history
We consider a Wicksellian or Neo‐Austrian model of production with a continuum of techniques. For this model we provide an example in which a monotonically decreasing demand for capital schedule is combined with reswitching and a net product per worker that increases (over a certain interval) as the interest rate increases.