The effects of hoarding on economic growth from the perspective of capital theory

摘要

Capital theory as a branch of political economy is experiencing a slow, but clear, decline in academic interest. Because of its reluctance in using quantitative methods of enquiry, many researchers consider that it lacks scientific precision. We argue that capital theory in the tradition of Eugen von Bohm-Bawerk (1930) and his followers is able to offer us valuable explanations regarding fundamental economic phenomena related to economic growth. By using comparative statics analysis we will investigate the effects of hoarding on the structure of production and consequently on economic growth.