The author looks at Keynes's concept of the marginal effiiency of capital in Book IV of The General Theory, which is meant to analyse the factors determining 'The Inducement to Invest'. Keynes singles out two major sources of inducement. First : the state of long-term expectations' - the result of entrepreneurs' 'animal spirits - and a spontaneous urge to action rather than inaction'. It is 'autonomous', with respect to formal economic analysis. Second: a careful economic calculus. Let us call it 'endogenous' investment. It is with reference to the endogenous source of investment that Keynes coins the analytical concept of the 'marginal efficiency of capital'.

Pasinetti, L. L., The Marginal Efficiency of Investment, in Harcourt, G., Riach, P. (ed.), A “Second Edition” of the General Theory, Routledge, London 1997: 198- 218 [http://hdl.handle.net/10807/80180]

The Marginal Efficiency of Investment

Pasinetti
Primo
1997

Abstract

The author looks at Keynes's concept of the marginal effiiency of capital in Book IV of The General Theory, which is meant to analyse the factors determining 'The Inducement to Invest'. Keynes singles out two major sources of inducement. First : the state of long-term expectations' - the result of entrepreneurs' 'animal spirits - and a spontaneous urge to action rather than inaction'. It is 'autonomous', with respect to formal economic analysis. Second: a careful economic calculus. Let us call it 'endogenous' investment. It is with reference to the endogenous source of investment that Keynes coins the analytical concept of the 'marginal efficiency of capital'.
Inglese
A “Second Edition” of the General Theory
0415149428
Routledge
Pasinetti, L. L., The Marginal Efficiency of Investment, in Harcourt, G., Riach, P. (ed.), A “Second Edition” of the General Theory, Routledge, London 1997: 198- 218 [http://hdl.handle.net/10807/80180]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/80180
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