Capital Theory and the Rate of Return

aggregate production function analysis approximate assumption C₁ calculate capital-output ratios capitalists Cobb-Douglas compensation of employees constant returns depreciation disembodied technical economists economy effective capital effective stock elasticity of output embodied technical progress estimates factors of production Germany gross investment hand production handicraft increase in output increment industry interest rates labor input level of technology long-run marginal product microeconomic next-period obsolescence one-period rate output per unit output with respect Paul Samuelson period planned allocation planning authority plant and equipment possible potential output private and social private rate problem product of capital productive capacity Professor question rate of return rate of technical real wage return on investment returns to scale saving and investment social rate social return stationary stock of capital stock of machines technical change technocratic technological progress theoretical theory of capital unit of effective units of consumables workers