Contents

**I - Classical Theories of Capital**

(1) The Problem of Capital and Interest

(2) Explaining Interest

(3) Equilibrium and Reproduction

**II - The Neoclassical Theory of Capital**

(1) Introduction

(2) The Marginal Productivity Theory of Capital

(3) The Cambridge Capital Controversy

(A) The Aggregation Question

(B) Capital Reswitching

(C) Capital Reversing

(D) The Course of the Debate

(4) Aftermath

**III - The Austrian Theory of Capital**

(1) Introduction: Capital and Time

(2) Jevons's Amount of Investment

(3) Böhm-Bawerk's Average Period of Production

(A) Roundaboutedness and the Agio

(B) The Average Period of Production

(C) Stationary Equilibrium

(4) Wicksell's Optimal Production Period

(A) Compound
Interest

(B) The
Optimal Production Period

(C) Real and
Price Wicksell Effects

(5) Hayek's Disequilibrium Theory

(6) Hicks's Flows

(7) Debates in Austrian Capital Theory

**IV - The Walrasian Theory of Capital**

(1) Introduction

(2) Léon Walras's Progressive Theory of Capital

(3) John von Neumann's Expanding Economy

(4) The Neo-Walrasian Theory of Capital

(5) Aftermath

(1) Introduction: Capital versus Investment

(2) Irving Fisher's Theory of Investment

(3) The Clark-Knight-Ramsey Crusonia

(4) John Maynard Keynes's Internal Rate of Return

(5) Jorgenson's Optimization Theory

(6) Marginal Adjustment Costs and Tobin's q

(7) The Aftalion-Clark Accelerator