Hayek's Average Period of Production: One Step Forward and a Missed Opportunity
20 Pages Posted: 8 Mar 2018 Last revised: 15 Jun 2018
Date Written: March 1, 2018
One of Hayek’s most important contributions is his work on capital theory and business cycles as presented in Prices and Production. Hayek made significant contributions in this field. Significant contribution, however, usually are not free of issues. In this chapter, we discuss the distinctive characteristics of Hayek’s work on capital theory and how the questions his treatment raised can be answered with modern financial calculations. We also discuss Hayek’s work on capital theory after Prices and Production.
Keywords: Hayek, capital structure, period of production, roundaboutness, duration
JEL Classification: B22; B53
Suggested Citation: Suggested Citation