Psychology Dictionary of ArgumentsHome
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| Marginal Product of Capital: The Marginal Product of Capital (MPK) is the additional output generated by investing one more unit of capital, holding other inputs constant. It measures capital productivity and influences investment decisions. MPK typically declines as more capital is added due to diminishing returns. See also Marginal efficiency of capital, Capital theory, Capital, Marginalism._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Robert Solow on Marginal Product of Capital - Dictionary of Arguments
Harcourt I 115 Marginal Product of Capital/Solow/Harcourt: Solow's emphasis on the equality of private and social rates of return, especially in the embodied case((s) where the technical progress is embodied in maschines), is not intended to give the impression that they are equal. For „embodied“ see >Terminology/Harcourt. (Most of his analysis, though, in Capital Theory and the Rate of Return(1), the Dobb Festschrift paper and his subsequent reply to Pasinetti's criticisms, is directed to this end, while his wise asides continue to deny it.) Harcourt I 116 The emphasis is meant, rather, to demonstrate 'the much weaker proposition that if the private and social marginal products of capital coincide, then the private and social rates of return will coincide', Solow [1963a](1), p. 65. HarcourtVsSolow: Two puzzles then arise: first, are marginal products of aggregate capital definable and important after all? Secondly, what is the significance of the equalities: could we - should we - in fact without qualms leave investment decisions to private businessmen (and saving to private individuals)? >Return on investments/Solow. 1. Solow, Robert M. [1963a] (Professor Dr. F. De Vries Lectures, 1963) Capital Theory and the Rate of Return (Amsterdam: North-Holland)._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Solow I Robert M. Solow A Contribution to the Theory of Economic Growth Cambridge 1956 Harcourt I Geoffrey C. Harcourt Some Cambridge controversies in the theory of capital Cambridge 1972 |
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