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AXING WICKSELL'S DURABILITY RESULT
Author(s) -
Steedman Ian
Publication year - 2013
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/meca.12001
Subject(s) - economics , capital (architecture) , wage , durability , mathematical economics , neoclassical economics , keynesian economics , labour economics , microeconomics , computer science , art , database , visual arts
In the course of discussing Å kerman's problem, W icksell maintained that, when capitalists can choose the length of life of a fixed capital good, the chosen lifetime will be positively related to the real wage. It is shown that this conclusion collapses once we drop W icksell's extreme assumption that the capital good is made by unassisted labour.