The Pure Theory of Capital by Hayek, F. A.; White, Lawrence H.;

Short description:

This long-overlooked manifesto of capital theory was Hayek's most detailed work in economics. With a new introduction by Hayek expert Lawrence H. White, it is now available again for today’s students and economists to discover.

Long description:

F. A. Hayek’s long-overlooked 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 "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.

Table of Contents:

Part 1: Introductoion  1. The Scope of the Inquiry  2. Equilibrium Analysis and the Capital Problem  3. The Significance of Analysis in Real Terms  4. The Relation of this Study to the Current Theories of Capital  5. The Nature of the Capital Problem  6. The Duration of the Process of Production and the Durability of Goods: Some Definitions  7. Capital and the ‘Subsistence Fund’  Part 2: Investment in a Simple Economy  8. The Output Function and the Input Function  9. The Continuous Process of Production  10. The Position of Durable Goods in the Investment Structure  11. The Productivity of Investment  12. Planning for a Constant Output Stream  13. Compound Interest and the Instantaneous Rate of Interest  14. The Marginal Productivity of Investment and the Rate of Interest  15. Input, Output, and the Stock of Capital in Value Terms  16. The Marginal Value Product of Investment: The Problem of Attribution (Imputation)  17. Time Preference and its Effects with Constant Returns on Investment  18. The Preference and Productivity: Their Relative Importance  Part 3: Capitalistic Production in a Competitive Community  19. The General Conditions of Equilibrium  20. The Accumulation of Capital  21. The Effect of the Accumulation of Capital on the Quantities Produced and on Relative Prices of Different Commodities  22. The Adjustment of the Capital Structure to Foreseen Changes  23. The Effects of Unforeseen Changes and in Particular of Inventions  24. The Mobility of Capital  25. ‘Saving’, ‘Investment’ and the ‘Consumption of Capital’  Part 4: The Rate of Interest in a Money Economy  26. Factors Affecting the Rate of Interest in the Short Run  27. Long-run Forces Affecting the Rate of Interest  28. Differences between Interest Rates: Conclusions and Outlook