A Critique of Friedrich Hayek's Argumentation in Favor of a Productivity Theory of Interest
Renaud Fillieule (renaud.fillieule@univ-lille.fr)
Additional contact information
Renaud Fillieule: Université de Lille
Post-Print from HAL
Abstract:
First in his paper «Utility Analysis and Interest» (1936) and then in two chapters of The Pure Theory of Capital (1941), Hayek develops a model of the interest rate that combines productivity and time-preference in a graphical framework inspired by Fisher 1930. Hayek claims that his model supports a productivity explanation of interest, in which time preference plays no role at all or only a minor role. We show in this paper that the arguments he puts forward in favor of a productivity explanation do not prove his point at all, and that his neglect of the role of time preference remains therefore unjustified. The consequences for his model of fully taking time preference into account are then investigated.
Keywords: Friedrich A. Hayek; Interest Rate; Time Preference; Productivity (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:
Published in History of Economic Ideas, 2022, 30 (1), pp.143-156. ⟨10.19272/202206101005⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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:hal:journl:hal-04207131
DOI: 10.19272/202206101005
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).