Classical, Keynes' and Neoclassical Investment Theory--A Synthesis

Ingemar Hansson

Oxford Economic Papers, 1986, vol. 38, issue 2, 305-16

Abstract: This paper presents an investment theory for the firm and the indu stry under rational expectations that encompasses: (1) classical capital theory; (2) a solid microeconomic basis for Keynes's investment theory; and (3) traditi onal neoclassical investment theory for the firm. These three types of investmen t theory are consequently complementary rather than contradictory. Classical cap ital theory is relevant for a comparative statics analysis of long- run equilibri a. Keynes's investment theory is applicable for the determination of the industr y's investment, given any expected paths for demand, supply, and technology. Neo classical investment theory for the firm is relevant to analyze effects of chang es that affect a single firm only. Copyright 1986 by Royal Economic Society.

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819860 ... 0.CO%3B2-P&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:oup:oxecpp:v:38:y:1986:i:2:p:305-16

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().