czas-i-pomiary: Cambridge capital controversy

Evidence: 100 • authority: 72

The Cambridge capital controversy, sometimes called "the capital controversy" or "the two Cambridges debate", was a dispute between proponents of two differing theoretical and mathematical positions in economics that started in the 1950s and lasted well into the 1960s. The debate concerned the nature and role of capital goods and a critique of the neoclassical vision of aggregate production and distribution. The name arises from the location of the principals involved in the controversy: the debate was largely between economists such as Joan Robinson and Piero Sraffa at the University of Cambridge in England and economists such as Paul Samuelson and Robert Solow at the Massachusetts Institu…

Evidence: 43 • authority: 88

Unsolving Capital Theory A Perspective for the Economy The Cambridge Capital Controversy, the Aggregation Problem, and a Micro-lifecycle Utility Framework for Valuing Heterogeneous Capital. This paper revisits the unresolved core of the Cambridge Capital Controversy and argues that its persistence is a feature of economic science rather than a defect. The neoclassical production function, Q = f(L, K), runs into a circularity the moment it tries to compress physically heterogeneous assets-a blast furnace, a lathe, a server rack-into a single scalar K. Because the money value of capital depends on the rate of profit, and the rate of profit is in turn supposed to be governed by the quantity of…