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Equal Rates of Return and/or Clearing of Factor Markets in Two-Sector OLG-Models with Heterogeneous Capital Goods

  • Karl Farmer
Conference paper

Abstract

This paper has its origins in a controversy between Filippi (1980) and Morishima (1980) in the recent history of macrotheoretic general equilibrium models. It concerns the compatibility of two short-run equilibrium conditions in general equilibrium models of capital accumulation and growth: the equality of the rates of return on heterogeneous capital goods and the clearing of the markets of capital services.

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References

  1. Diamond, P. A. (1965), National debt in a neoclassical growth model, American Economic Review 55, 1126–1150.Google Scholar
  2. Filippi, F. (1980), Morishima’s interpretation of Keynes: Some comments and criticisms, Journal of Economics 40, 355–367.CrossRefGoogle Scholar
  3. Hahn, F. H. (1966), Equilibrium dynamics with heterogeneous capital goods, Quartely Journal of Economics 80, 633–645.CrossRefGoogle Scholar
  4. Morishima, M. (1977), Walras Economics, C. U. P., Cambridge.Google Scholar
  5. Morishima, M. (1980), Towards Keynes: A Reply to Mr. Filippi, Journal of Economics 40, 369–373.CrossRefGoogle Scholar
  6. Reichlin, P. (1986), Equilibrium cycles in an overlappinggenerations economy with production, Journal of Economic Theory 40, 89–102.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1993

Authors and Affiliations

  • Karl Farmer
    • 1
  1. 1.Department of EconomicsUniversity of GrazGrazAustria

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