The Proportionality Hypothesis in Capital Theory: an Assessment of the Literature

Dimitrios Koumparoulis ()
Additional contact information
Dimitrios Koumparoulis: Democritus University of Thrace, Faculty of International Economic Relations and Development

EuroEconomica, 2011, issue 27, 27-39

Abstract: It is found that the hypothesis of a constant replacement investment capital stock ratio has several fundamental shortcomings. It conflicts with most of the available theoretical and empirical evidence. It is alien to researchers in other fields of economics and related areas; and, perhaps most importantly, it has restrained progress in economic theory and econometric applications based on more realistic conceptualizations of the time structure of capital. On these grounds it is concluded that its abandonment is long overdue..

Keywords: Capital longevity; replacement; depreciation; maintenance; utilization; obsolescence. (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/781/707 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dug:journl:y:2011:i:27:p:27-39

Access Statistics for this article

More articles in EuroEconomica from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Florian Nuta ().