Axing Wicksell's Durability Result
6 Pages Posted: 5 Jan 2013
Date Written: February 2013
In the course of discussing Åkerman's problem, Wicksell maintained that, when capitalists can choose the length of life of a fixed capital good, the chosen lifetime will be positively related to the real wage. It is shown that this conclusion collapses once we drop Wicksell's extreme assumption that the capital good is made by unassisted labour.
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