A note on capital obsolescence (and underutilization) in classical and neoclassical normal positions

Roberto Ciccone ()
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Roberto Ciccone: Roma Tre University

Bulletin of Political Economy, 2021, vol. 15, issue 2, 123-146

Abstract: On account of the relevance that in principle the size and composition of the existing stock of capital goods might have, we attempt to verify whether in the classical and neoclassical approach thereotical positions may retain their role as centres of gravity in situations of prolonged divergences between the existing capital stock and the size and/or physical composition of the set of means of production implied in normal magnitudes. The kind of divergence against which we will compare the one and the other theoretical system consists, in particular, in the maintenance in use of ‘machines’ that have been rendered obsolete by the introduction of some change in the ‘dominant’ methods of production, i.e. the methods relevant to price determination, but which producers find it convenient to continue operating for the rest of their useful life.

Keywords: classical and neoclassical normal positions; capital obsolescence; underutilisation of productive capacity; centres of gravity (search for similar items in EconPapers)
JEL-codes: D24 D46 E11 E13 E22 (search for similar items in EconPapers)
Date: 2021
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