Capital and Time: A Neo-Austrian Theory

By J. R. Hicks | Go to book overview

I Goods and Processes

1

A capital good, it is commonly said (and I have said it myself), is one that 'can be used in any way to satisfy wants in subsequent periods'. 1 It is not ruled out, on this definition, that the same good may be both capital good and consumption good. The domestic car is usable this week, and will continue (one hopes) to be usable in subsequent weeks; it satisfies present wants and future wants jointly. The same is true of consumer capital goods generally. But it is not only the durable goods which are at present in the possession of the consumer which have this property of present-future jointness. For the same is true of the car that is hired, or rented, even one that is only rented for a particular occasion. It still serves, or is intended to serve, both present and future wants; but the present and the future wants are wants of different people.

Thus if one is thinking in terms of ownership, the capital good-consumption good line is drawn in one place; but if one is thinking in terms of want-satisfaction, it is drawn in another. Houses, of course, are the prime example of a good which may be owned outright by the current user, or may be rented. In some states of society, most houses are rented; in others, most are owned outright. But unless we are specially interested in questions of home ownership, we are usually prepared to reckon all houses as consumers' capital goods, because they satisfy (directly) both present and future wants. We may nevertheless be willing to take as our standard case that in which all houses are rented—reckoning the home owner as paying an 'imputed rent' to himself.

It remains the case, if we take the latter view, that the fundamental distinction among capital goods is between those which satisfy present and future wants jointly, and those which derive the whole of their value from the contribution which they are expected to make to the satisfaction of future wants. As has just been shown, this is not the same as the distinction in terms of

-3-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Capital and Time: A Neo-Austrian Theory
Table of contents

Table of contents

  • Capital and Time iii
  • Preface v
  • Contents ix
  • Part I- Model 1
  • I- Goods and Processes 3
  • II- The Process and Its Profiles 14
  • III- Social Accounting 27
  • IV- Technique and Technology 37
  • V- Full Performance and Full Employment 47
  • VI- Steady States 63
  • II- Traverse 80
  • VII- The Standard Case and the Simple Profile 81
  • VIII- The Fixwage Path 89
  • IX- The Full Employment Path 100
  • X- Substitution 110
  • XI- Shortening and Lengthening 125
  • XII- Ways Ahead 135
  • Part III- Controversy 149
  • XIII- The Measurement of Capital—value and Volume 151
  • XIV- The Accumulation of Capital 167
  • XV- The Production Function 177
  • Appendix 185
  • Index 211
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 213

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.