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

  • Karl Farmer
Conference paper


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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Copyright information

© Springer-Verlag Berlin Heidelberg 1993

Authors and Affiliations

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

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