Introduction into Capital Theory

Download or read book Introduction into Capital Theory written by Gunter Stephan and published by Springer Science & Business Media. This book was released on 2013-03-14 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital theory is a cornerstone of modern economics. Its ideas are fundamental for dynamic equilibrium theory and its concepts are applied in many branches of economics like game theory, resource and environmental economics, although this may not be recognized on a first glance. In this monograph, an approach is presented, which allows to derive important results of capital theory in a coherent and readily accessible framework. A special emphasis is given on infinite horizon and overlapping generations economics. Irreversibility of time, or the failure of the market system appear in a different light if an infinite horizon framework is applied. To bridge the gap between pure and applied economic theory, the structure of our theoretical approach is integrated in a computable general equilibrium model.