Abstract
Short-period analysis of the product market depends on the assumptions that all investment is determined by exogenous factors, including the rate of interest, and that the period is so short that changes in the stock of capital resulting from investment can be ignored. The level of income in static equilibrium may also be interpreted as a stationary state, implying no induced investment (depending on income or income changes) and an optimal capital stock.
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© 1967 R. G. D. Allen
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Allen, R.G.D. (1967). Capital Accumulation. In: Macro-Economic Theory. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-81541-8_10
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DOI: https://doi.org/10.1007/978-1-349-81541-8_10
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-81543-2
Online ISBN: 978-1-349-81541-8
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