The Pure Theory of Capital (Volume 12) (The Collected Works of F. A. Hayek)

The Pure Theory of Capital , F. A. Hayek’s long-overlooked, little-understood volume, was his most detailed work in economic theory. Originally published in 1941 when fashionable economic thought had shifted to John Maynard Keynes, Hayek’s manifesto of capital theory is now available again for today’s students and economists to discover. With a new introduction by Hayek expert Lawrence H. White, who firmly situates the book not only in historical and theoretical context but within Hayek’s own life and his struggle to complete the manuscript, this edition commemorates the celebrated scholar’s last major work in economics. Offering a detailed account of the equilibrium relationships between inputs and outputs in an economy, Hayek’s stated objective was to make capital theory—which had previously been devoted almost entirely to the explanation of interest rates—“useful for the analysis of the monetary phenomena of the real world.” His ambitious goal was nothing less than to develop a capital theory that could be fully integrated into the business cycle theory. CONTENTS......Page 8 EDITORIAL FOREWORD......Page 10 EDITOR’S ACKNOWLEDGEMENTS......Page 12 EDITOR’S INTRODUCTION......Page 14 F. A. HAYEK The Pure Theory of Capital PREFACE......Page 38 CONTENTS......Page 44 ANALYTICAL TABLE OF CONTENTS......Page 48 INTRODUCTORY......Page 66 THE SCOPE OF THE INQUIRY......Page 68 EQUILIBRIUM ANALYSIS AND THE CAPITAL PROBLEM......Page 77 THE SIGNIFICANCE OF ANALYSIS IN REAL TERMS......Page 89 THE RELATION OF THIS STUDY TO THE CURRENT THEORIES OF CAPITAL......Page 99 THE NATURE OF THE CAPITAL PROBLEM1......Page 108 THE DURATION OF THE PROCESS OF PRODUCTION AND THE DURABILITY OF GOODS: SOME DEFINITIONS......Page 121 CAPITAL AND THE ‘ SUBSISTENCE FUND’......Page 137 INVESTMENT IN A SIMPLE ECONOMY......Page 146 THE OUTPUT FUNCTION AND THE INPUT FUNCTION......Page 148 THE CONTINUOUS PROCESS OF PRODUCTION......Page 163 THE POSITION OF DURABLE GOODS IN THE INVESTMENT STRUCTURE......Page 174 THE PRODUCTIVITY OF INVESTMENT......Page 185 PLANNING FOR A CONSTANT OUTPUT STREAM......Page 197 COMPOUND INTEREST AND THE INSTANTANEOUS RATE OF INTEREST......Page 210 THE MARGINAL PRODUCTIVITY OF INVESTMENT AND THE RATE OF INTEREST......Page 217 INPUT, OUTPUT, AND THE STOCK OF CAPITAL IN VALUE TERMS1......Page 229 THE MARGINAL VALUE PRODUCT OF INVESTMENT: THE PROBLEM OF ATTRIBUTION ( IMPUTATION)......Page 236 TIME PREFERENCE AND ITS EFFECTS WITH CONSTANT RETURNS ON INVESTMENT1......Page 247 TIME PREFERENCE AND PRODUCTIVITY: THEIR RELATIVE IMPORTANCE......Page 258 CAPITALISTIC PRODUCTION IN A COMPETITIVE COMMUNITY......Page 272 THE GENERAL CONDITIONS OF EQUILIBRIUM......Page 274 THE ACCUMULATION OF CAPITAL......Page 290 THE EFFECT OF THE ACCUMULATION OF CAPITAL ON THE QUANTITIES PRODUCED AND ON RELATIVE PRICES OF DIFFERENT COMMODITIES......Page 304 THE ADJUSTMENT OF THE CAPITAL STRUCTURE TO FORESEEN CHANGES......Page 311 THE EFFECTS OF UNFORESEEN CHANGES AND IN PARTICULAR OF INVENTIONS......Page 322 THE MOBILITY OF CAPITAL......Page 336 ‘ SAVING’, ‘ INVESTMENT’, AND THE ‘ CONSUMPTION OF CAPITAL’......Page 345 THE RATE OF INTEREST IN A MONEY ECONOMY......Page 358 FACTORS AFFECTING THE RATE OF INTEREST IN THE SHORT RUN......Page 360 LONG-RUN FORCES AFFECTING THE RATE OF INTEREST......Page 374 DIFFERENCES BETWEEN INTEREST RATES: CONCLUSIONS AND OUTLOOK......Page 396 APPENDIX I Time Preference and Productivity......Page 408 APPENDIX II The ‘ Conversion of Circulating Capital Into Fixed Capital’......Page 417 The Doctrine of ‘ Derived Demand’......Page 425 APPENDIX IV A Comment1......Page 432 APPENDIX V Time-Preference and Productivity: A Reconsideration1......Page 433 INDEX OF DEFINITIONS OF SOME TECHNICAL TERMS......Page 440 BIBLIOGRAPHY......Page 442 INDEX......Page 450

the Pure Theory Of Capital, F. A. Hayek’s Long-overlooked, Little-understood Volume, Was His Most Detailed Work In Economic Theory. Originally Published In 1941 When Fashionable Economic Thought Had Shifted To John Maynard Keynes, Hayek’s Manifesto Of Capital Theory Is Now Available Again For Today’s Students And Economists To Discover.

with A New Introduction By Hayek Expert Lawrence H. White, Who Firmly Situates The Book Not Only In Historical And Theoretical Context But Within Hayek’s Own Life And His Struggle To Complete The Manuscript, This Edition Commemorates The Celebrated Scholar’s Last Major Work In Economics. Offering A Detailed Account Of The Equilibrium Relationships Between Inputs And Outputs In An Economy, Hayek’s Stated Objective Was To Make Capital Theory—which Had Previously Been Devoted Almost Entirely To The Explanation Of Interest Rates—“useful For The Analysis Of The Monetary Phenomena Of The Real World.” His Ambitious Goal Was Nothing Less Than To Develop A Capital Theory That Could Be Fully Integrated Into The Business Cycle Theory.

"The Pure Theory of Capital, F.A. Hayek's most detailed work in economic theory, has been long overlooked. First published in 1941, it stood in sharp contrast with fashionable economic thought, which had shifted under the influence of John Maynard Keynes. This edition commemorates Hayek's last major work in economics, which offers a detailed account of the equilibrium relationships between inputs and outputs in a time-filled economy. Hayek's stated objective was to make capital theory - which had previously been devoted almost entirely to the explanation of interest rates - "useful for the analysis of the monetary phenomena of the real world." His ambitious goal was nothing less than to develop a capital theory that could be fully integrated into business cycle theory __The Pure Theory of Capital__With a new introduction by Hayek expert Lawrence H. White, who firmly situates the book not only in historical and theoretical context but within Hayek’s own life and his struggle to complete the manuscript, this edition commemorates the celebrated scholar’s last major work in economics. Offering a detailed account of the equilibrium relationships between inputs and outputs in an economy, Hayek’s stated objective was to make capital theory—which had previously been devoted almost entirely to the explanation of interest rates—“useful for the analysis of the monetary phenomena of the real world.” His ambitious goal was nothing less than to develop a capital theory that could be fully integrated into the business cycle theory. The Collected Works of F.A. Hayek is a projected nineteen volume series that will contain newly edited editions of Hayek's books, interviews with the author, new editions of his articles and letters, and hitherto unpublished manuscript. -- Publisher The Collected Works of F.A. Hayek is a projected nineteen volume series that will contain newly edited editions of Hayek s books, interviews with the author, new editions of his articles and letters, and hitherto unpublished manuscript. -- Publisher The Collected Works of F.A. Hayek. Volume 10.This new volume documents the evolution of Hayed's thought on socialism and war during the dark decades of the 1930's and 1940's.