Abstract
A fundamental problem in the theory of allocation of resources over time is to find easily applicable criteria that can characterize efficient programs. It is well known for the finite horizon case that efficient programs can be associated with value maximizing prices, provided the technology is convex. But there are problems with this characterization, if the horizon is infinite.
I am grateful fo Prof. M.Faber, to Prof. H.J. Jaksch, to Dr.F.Breyer, to Dr. F.-J. Vodopia and to an unknown referee for their helpful comments. Of course, I assume full responsibility for any error. This research was supported by the Deutsche Forschungsgemeinschaft. Reprinted from Zeitschrift für die gesamte Staatswissenschaft, 139, 1983, p.660–677, including slight modifications.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Alkan, A.U. [1980], “Efficient Programs for Polyhedral Technologies are Competitive,” Review of Economic Studies, 47, 465–471.
Bernholz, P. [1971], “Superiority of Roundabout Processes and Positive Rate of Interest,” Kyklos, 24, 687–721.
Bernholz, P. and M. Faber [1976], “Time Consuming Innovation and Positive Rate of Interest,” Zeitschrift für Nationalökonomie, 36, 347–367.
Bernholz, P., M. Faber and W. Reiss [1978], “A Neo-Austrian Two Period-Multi-Sector Model of Capital,” Journal of Economic Theory, 17, 38–50 (see Chapter 5 in this volume).
Faber, M., H. Niemes and G. Stephan [1983], Entropie, Umweltschutz und Rohstoffverbrauch. Eine naturwissenschaftlich ökonomische Untersuchung. Lecture Notes in Economics and Mathematical Systems 214, Springer-Verlag Berlin, Heidelberg, New York, Tokyo.
Faber-M. and G. Stephan [1981], “A Neo-Austrian Characterization of Proportional Malinvaud Prices with a Positive Rate of Interest Relative to the Growth Rate,” Heidelberger Diskussionsschrift, 73. (A revised version of this discussion paper is published in this volume.)
Jaksch, H.J. [1975], “Die Mehrergiebigkeit längerer Wege in einem linearen Vielsektorenmodell,” Zeitschrift für die gesamte Staatswissenschaft, 131, 92–105.
Koopmans, T.C. [1953], Three Essays on the State of Economic Science, McGraw-Hill Book Company.
Kurz, M. [1969], “Tightness and Substitution in the Theory of Capital,” Journal of Economic Theory, 1, 244–272.
Kurz, M. and M. Majumdar [1972], “Efficiency Prices in Infinite Dimensional Spaces,” Review of Economic Studies, 39, 14 7–159.
Malinvaud, E. [1953], “Capital Accumulation and Efficient Allocation of Resources,” Econometrica, 21, 233–268.
Malinvaud, E. [1960], “The Analogy Between Atemporal and Intertemporal Theories of Resource Allocation,” Review of Economic Studies, 28, 143–159.
Malinvaud, E. [1962], “Efficient Capital Accumulation: A Corrigendum,” Econometrica, 30, 570–573.
Majumdar, M. [1974], “Efficient Programs in Infinite Dimensional Space,” Jorunal of Economic Theory, 7, 355–369.
McFadden, D. [1967], “The Evaluation of Development Programs,” Review of Economic Studies, 34, 25–50.
McFadden, D. [1975], “An Example of Non-Existence of Malinvaud Prices in a Tight Economy,” Journal of Mathematical Economics, 2, 15–19.
Peleg, B. and M. Yaari [1970], “Efficiency Prices in a Infinite Dimensional Space,” Journal of Economic Theory, 2, 41–86.
Radner, R. [1967], “Efficiency Prices for Infinite Horizon Production Programs,” Review of Economic Studies, 34, 51–66.
Reiss, W. [1981], Umwegproduktion und Positivität des Zinses. Eine neo-österreichische Analyse, Duncker und Humblot, Berlin.
Reiss, W. and M. Faber [1982], “Own Rates of Interest in a General Multi-sector Model of Capital,” in Games, Economic Dynamics, and Time Series Analysis, 194–209, Physika-Verlag Wien, Würzburg (see Chapter 6 in this volume).
Starrett, D. [1970], “The Efficiency of Competitive Programs,” Econometrica, 38, 704–711.
Stephan, G. [1980], Preise und Zinsen in Modellen mit unendlichem Horizont, R.G. Fischer, Frankfurt.
Stephan, G. [1985], “Competitive Finite Value Prices: A Complete Characterization,” Zeitschrift für Nationalökonomie, 45, 35–45 (see Chapter 10 in this volume).
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1986 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Stephan, G. (1986). Roundaboutness, Nontightness and Malinvaud Prices in Multisector Models with Infinite Horizon. In: Faber, M. (eds) Studies in Austrian Capital Theory, Investment and Time. Lecture Notes in Economics and Mathematical Systems, vol 277. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-51701-3_10
Download citation
DOI: https://doi.org/10.1007/978-3-642-51701-3_10
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-16804-1
Online ISBN: 978-3-642-51701-3
eBook Packages: Springer Book Archive