The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Wicksell Effects

  • Edwin Burmeister
Reference work entry


In realistic economic models with n different types of capital goods, the value of the capital stock iswhere Pi is the price of the ith capital good in terms of some numéraire. The value of capital, however, is not an appropriate measure of the ‘aggregate capital stock’ as a factor of production except under extremely restrictive conditions. Wicksell (1893, 1934) originally recognized this fact, which subsequently was emphasized by Robinson (1956).


Capital deepening Capital goods Capital theory Capital theory paradoxes Numeraire Production possibility frontier Wicksell effects Wicksell, J. G. K. 

JEL Classifications

This is a preview of subscription content, log in to check access.


  1. Bliss, C. 1975. Capital theory and the distribution of income. Amsterdam: North-Holland.Google Scholar
  2. Burmeister, E. 1976. Real Wicksell effects and regular economies. In Essays in modern capital theory, ed. M. Brown, K. Sato, and P. Zarembka. Amsterdam: North-Holland.Google Scholar
  3. Burmeister, E. 1977. On the social significance of the reswitching controversy. Revue d’économie politique 87: 330–350.Google Scholar
  4. Burmeister, E. 1979. Professor Pasinetti’s ‘unobtrusive postulate’, regular economies, and the existence of a well-behaved aggregate production function. Revue d’économie politique 89: 644–652.Google Scholar
  5. Burmeister, E., and A.R. Dobell. 1970. Mathematical theories of economic growth. New York: Macmillan.Google Scholar
  6. Burmeister, E., and S.J. Turnovsky. 1971. The degree of joint production. International Economic Review 12: 99–105.CrossRefGoogle Scholar
  7. Burmeister, E., and S.J. Turnovsky. 1972. Capital deepening response in an economy with heterogeneous capital goods. American Economic Review 62: 842–853.Google Scholar
  8. Kuga, K. 1973. More about joint production. International Economic Review 14: 196–210.CrossRefGoogle Scholar
  9. Robinson, J. 1956. The accumulation of capital. London: Macmillan.Google Scholar
  10. Samuelson, P.A. 1966. The fundamental singularity theorem for non-joint production. International Economic Review 7: 34–41.CrossRefGoogle Scholar
  11. Swan, T. 1956. Economic growth and capital accumulation. Economic Record 32: 334–361.CrossRefGoogle Scholar
  12. Uhr, C.G. 1951. Kunt Wicksell, a centennial evaluation. American Economic Review 41: 829–860.Google Scholar
  13. Wicksell, K. 1893. Value, capital and rent. Reprinted New York: Augustus M. Kelley, 1970.Google Scholar
  14. Wicksell, K. 1934. Lectures on political economy. 3rd ed. London: George Routledge and Sons Limited, 1938.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Edwin Burmeister
    • 1
  1. 1.