The Role of Capital Structure in ABCT

Abstract

We argue that the application of financial analysis, especially that of duration, clarifies and supports the application of the average period of production in ABCT. We also suggest that the focus in the recent ABCT literature should be more on the average period of production (APP) and less in the stages of production as depicted in Hayek’s triangle in Garrison’s model.

Keywords: ABCT, capital theory, roundaboutness, average period of production

JEL Classification: B22, B25, E14, E32