Austrian Capital Theory: A Modern Survey of the Essentials
by Peter Lewin  (Author), Nicolas Cachanosky (Author)

About the Author
Peter Lewin is Senior Lecturer in Economics, Finance and Management in the School of Management at the University of Texas, Dallas.
Nicolás Cachanosky is Assistant Professor of Economics at Metropolitan State University of Denver, USA. His main research is on monetary policy and appears in the Journal of Institutional Economics, the Quarterly Review of Economics and Finance, and in the Review of Financial Economics among others.

About this book
This Element presents a new framework for Austrian Capital Theory, starting from the notion that capital is value. Capital is the value attributed by the valuer at any moment in time to the combination of production-goods and labor available for production. Capital is the result obtained by calculating the current value of a business-unit or business-project that employs resources over time. It is the result of a (subjective) entrepreneurial calculation process that relates the flow of consumptions goods to the value of the productive resources that will produce those consumptions goods. The entrepreneur is a ubiquitous calculating presence. In a review of the development of Austrian Capital Theory, by Carl Manger, Eugen von Böhm-Bawerk, Ludwig von Mises, Friedrich Hayek, Ludwig Lachmann as well as recent contributions, the Element incorporates the seminal contributions into the new framework in order to provide a more accessible perspective on Austrian Capital Theory.

Contents
1 Introduction and Background 1
2 Carl Menger and the Structure of Production 5
3 Böhm-Bawerk’s Labor Arithmetic 8
4 Austrian Capital Theory and Austrian Business Cycle Theory 16
5 Hayek’s Capital Theory 23
6 Ludwig Lachmann’s Kaleidic World of Capital Heterogeneity 35
7 Ludwig von Mises’s “Capital from a Financial Perspective” 41
8 Capital in the Aggregate Production Function 46
9 Capital in a Simple Financial Framework 51
10 Conclusion: The Entrepreneur Adds Value by Capitalizing Resources 65
Appendix: The Neo-Ricardian Challenge and Its Misconceptions 67
References 75

Series: Elements in Austrian Economics
Length: 88 pages
Publisher: Cambridge University Press (January 10, 2019)
Language: English
ISBN-10: 1108735886
ISBN-13: 978-1108735889