The Evolution of the Notion of Capital in Economics

University:
Swansea University
Course:
FIN520 | Financial Ethics and Accountability
Academic year:

2024
Views:

100

Pages:

2
Author:

Caroline H.

THE EVOLUTION OF THE NOTION OF CAPITAL IN ECONOMICS 1. Introduction  Overview of the diverse meanings attributed to the term "capital" in economics  Historical perspective on the concept of capital in economic theory 2. Classical Economics and Capital Accumulation  The role of capital accumulation in the division of labor and labor efficiency  Distinctions made by classical economists like Adam Smith and David Ricardo 3. Austrian School's Contribution to the Theory of Capital  Carl Menger's division of goods into economic and non-economic categories  The concept of goods of higher and lower order  Menger's definition of capital as a stock of production means 4. Time and Capital in Austrian Economics  The importance of time in economic processes  The period of production and its relation to capital accumulation  Roundabout methods of production and the law of diminishing returns 5. Eugen Böhm-Bawerk's Impact on Capital Theory  Böhm-Bawerk's distinction between socio-economic and individual capital  Productivity of capital and its role in linking original production factors  Roundaboutness of production and its connection to capitalistic methods 6. Continuation of Böhm-Bawerk's Theory by Ludwig von Mises  Mises' view on economic categories being related to human choices and actions  The role of saving and capital accumulation in improving living conditions  The distinction between capital goods and consumer goods 7. Capital as a Fundamental Notion in Economic Calculation  The importance of capital in economic calculation  Capital's association with the concept of income  The flexibility of goods being classified as capital or consumer goods 8. Conclusion  Recap of the evolution of the concept of capital in economics  The enduring significance of capital in economic theory and analysis