The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Linear Models

  • Edwin Burmeister
Reference work entry


Von Neumann’s linear economic model was first published in German in 1938 and translated into English in 1945. Since then there have been numerous economic and mathematical refinements, most of which are summarized in Burmeister and Dobell (1970) and/or Morishima (1969). The original von Neumann formulation did not admit either primary factors or final consumption. However, in the generalized von Neumann model described below, one primary factor, labour, is allowed, as well as a vector of final consumption goods. A further generalization allowing a vector of different primary factors is possible. Accordingly, linear models of Leontief–Sraffa (1960) type become a special case.

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  1. Burmeister, E. 1974. Synthesizing the neo-Austrian and alternative approaches to capital theory: A survey. Journal of Economic Literature 12 (2): 413–456.Google Scholar
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Edwin Burmeister
    • 1
  1. 1.