J. R. Hicks
- Published in print:
- 1987
- Published Online:
- November 2003
- ISBN:
- 9780198772866
- eISBN:
- 9780191596414
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198772866.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This book, first published in 1973, takes up an important approach to capital which had gone out of fashion. There has been some recent renewed interest in this approach. The ‘Austrian’ theory of ...
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This book, first published in 1973, takes up an important approach to capital which had gone out of fashion. There has been some recent renewed interest in this approach. The ‘Austrian’ theory of capital concentrates on the inputs and outputs in the productive process, and has an advantage over more modern theories of economic dynamics in that it is more naturally expressible in economic terms: the production process over time is taken as a whole, rather than disintegrated. However, this approach had been largely abandoned because it seemed to be unable to deal with fixed capital. The book overcomes this problem here by allowing for a sequence of outputs, and the consequences for dynamic economics are profound and novel.Less
This book, first published in 1973, takes up an important approach to capital which had gone out of fashion. There has been some recent renewed interest in this approach. The ‘Austrian’ theory of capital concentrates on the inputs and outputs in the productive process, and has an advantage over more modern theories of economic dynamics in that it is more naturally expressible in economic terms: the production process over time is taken as a whole, rather than disintegrated. However, this approach had been largely abandoned because it seemed to be unable to deal with fixed capital. The book overcomes this problem here by allowing for a sequence of outputs, and the consequences for dynamic economics are profound and novel.
John Hicks
- Published in print:
- 1987
- Published Online:
- November 2003
- ISBN:
- 9780198772873
- eISBN:
- 9780191596438
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198772874.003.0012
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The Keynes-type theory, if formulated in the way that we have been formulating it, needs to be completed by a consideration of what happens when fixed capital investment is not given autonomously, ...
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The Keynes-type theory, if formulated in the way that we have been formulating it, needs to be completed by a consideration of what happens when fixed capital investment is not given autonomously, but is itself dependent, in whole or in part, on changes in output. The working of an economy in which all investment is induced investment, is one of the things which we should like to understand. This chapter discusses a model of this kind called a Harrod-type model.Less
The Keynes-type theory, if formulated in the way that we have been formulating it, needs to be completed by a consideration of what happens when fixed capital investment is not given autonomously, but is itself dependent, in whole or in part, on changes in output. The working of an economy in which all investment is induced investment, is one of the things which we should like to understand. This chapter discusses a model of this kind called a Harrod-type model.
Maurice Wright
- Published in print:
- 2002
- Published Online:
- October 2011
- ISBN:
- 9780199250530
- eISBN:
- 9780191697937
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199250530.003.0023
- Subject:
- Political Science, Political Economy
Historically, Japan invested, and continues to invest, a greater proportion of its gross domestic product (GDP) in gross fixed capital formation than comparable industrialized countries. General ...
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Historically, Japan invested, and continues to invest, a greater proportion of its gross domestic product (GDP) in gross fixed capital formation than comparable industrialized countries. General government gross fixed capital formation accounted for about a fifth of the total, but on a rising trend in the 1990s, reaching 6.7% of GDP in fiscal year 1995, as government made repeated attempts to kick-start the economy with public works spending. As private investment declined after the collapse of the bubble economy, general government claimed an increasing proportion. Public investment by central government was planned and financed partly through the General Account Budget, partly through the Fiscal Investment Loan Programme (FILP), and partly through some of the thirty-eight Special Accounts. Some of the public investment schemes financed by public banks and finance corporations, and public corporations and special companies, apart from substantial FILP funding, were self-financed and/or financed by approved borrowing in domestic and overseas capital markets. This chapter discusses how Japan had become a public works state by the 1990s.Less
Historically, Japan invested, and continues to invest, a greater proportion of its gross domestic product (GDP) in gross fixed capital formation than comparable industrialized countries. General government gross fixed capital formation accounted for about a fifth of the total, but on a rising trend in the 1990s, reaching 6.7% of GDP in fiscal year 1995, as government made repeated attempts to kick-start the economy with public works spending. As private investment declined after the collapse of the bubble economy, general government claimed an increasing proportion. Public investment by central government was planned and financed partly through the General Account Budget, partly through the Fiscal Investment Loan Programme (FILP), and partly through some of the thirty-eight Special Accounts. Some of the public investment schemes financed by public banks and finance corporations, and public corporations and special companies, apart from substantial FILP funding, were self-financed and/or financed by approved borrowing in domestic and overseas capital markets. This chapter discusses how Japan had become a public works state by the 1990s.
James Foreman-Peck and Robert Millward
- Published in print:
- 1994
- Published Online:
- October 2011
- ISBN:
- 9780198203599
- eISBN:
- 9780191675881
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198203599.003.0002
- Subject:
- History, British and Irish Modern History, Economic History
This chapter looks at network technology industries between the years 1820 and 1870. It is inefficient to duplicate networks with high fixed capital costs. Additional considerations for public ...
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This chapter looks at network technology industries between the years 1820 and 1870. It is inefficient to duplicate networks with high fixed capital costs. Additional considerations for public regulation in gas and water proved to be geographically inadequate extensions of supply and health and safety concerns, which were even more important in the areas of gas and water than in rail travel. In short, state policy in these years allowed for a certain amount of competition between networks, and the public was dissatisfied with the results. Because there was no second-hand market for railway tracks, gas and water pipes under the streets, or telegraph lines, once investment had been undertaken, the network company was committed to the industry; its fixed costs were often literally, as well as conceptually, sunk costs. New entry into the whole range of an established company's activities was therefore unlikely to be successful unless the competitor was both large and much more efficient.Less
This chapter looks at network technology industries between the years 1820 and 1870. It is inefficient to duplicate networks with high fixed capital costs. Additional considerations for public regulation in gas and water proved to be geographically inadequate extensions of supply and health and safety concerns, which were even more important in the areas of gas and water than in rail travel. In short, state policy in these years allowed for a certain amount of competition between networks, and the public was dissatisfied with the results. Because there was no second-hand market for railway tracks, gas and water pipes under the streets, or telegraph lines, once investment had been undertaken, the network company was committed to the industry; its fixed costs were often literally, as well as conceptually, sunk costs. New entry into the whole range of an established company's activities was therefore unlikely to be successful unless the competitor was both large and much more efficient.
John Hicks
- Published in print:
- 1987
- Published Online:
- November 2003
- ISBN:
- 9780198772873
- eISBN:
- 9780191596438
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198772874.003.0010
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter analyses a problem involving the behaviour of the individual producer (or stock-holder). It focuses that part of his behaviour which relates to the stock (or inventory) of finished ...
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This chapter analyses a problem involving the behaviour of the individual producer (or stock-holder). It focuses that part of his behaviour which relates to the stock (or inventory) of finished product. In particular, the whole question of investment in fixed capital is left entirely on one side.Less
This chapter analyses a problem involving the behaviour of the individual producer (or stock-holder). It focuses that part of his behaviour which relates to the stock (or inventory) of finished product. In particular, the whole question of investment in fixed capital is left entirely on one side.
Kazimierz Łaski
Jerzy Osiatyński and Jan Toporowski (eds)
- Published in print:
- 2019
- Published Online:
- August 2019
- ISBN:
- 9780198842118
- eISBN:
- 9780191878169
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198842118.003.0009
- Subject:
- Economics and Finance, Macro- and Monetary Economics, History of Economic Thought
With an adequately skilled workforce and a sufficient supply of raw materials and energy, it is investment that allows national income and employment to grow. However, this growth is only potential. ...
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With an adequately skilled workforce and a sufficient supply of raw materials and energy, it is investment that allows national income and employment to grow. However, this growth is only potential. If it is to materialize, then effective demand has to expand in step with production capacity. To analyze this growth it is necessary to distinguish between actual investment that creates productive capacity this year, and investment decisions that will result in productive capacity in the future. As investment takes place, additional demand raises output and employment. However, as productive capacity expands, it brings forward the moment when demand starts to lag behind the growth of capacity, and excess capacity starts to depress investment. This causes business cycles. In the long run technological change will affect the trend of growth through successive business cycles.Less
With an adequately skilled workforce and a sufficient supply of raw materials and energy, it is investment that allows national income and employment to grow. However, this growth is only potential. If it is to materialize, then effective demand has to expand in step with production capacity. To analyze this growth it is necessary to distinguish between actual investment that creates productive capacity this year, and investment decisions that will result in productive capacity in the future. As investment takes place, additional demand raises output and employment. However, as productive capacity expands, it brings forward the moment when demand starts to lag behind the growth of capacity, and excess capacity starts to depress investment. This causes business cycles. In the long run technological change will affect the trend of growth through successive business cycles.
