Roundaboutness
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Roundaboutness, or roundabout methods of production, is the process whereby capital goods are produced first and then, with the help of the capital goods, the desired consumer goods are produced.[1]
An argument against Böhm-Bawerk's theory of roundaboutness, in economies with compound interest, was presented by Paul Samuelson [2] during the Cambridge capital controversy.
The concept, interpreted as rising technical composition of capital, is also used by some Marxian authors.[3]
References
[edit ]- ^ Buechner, M. Northrup (1989). "Roundaboutness and Productivity in Böhm-Bawerk". Southern Economic Journal. 56 (2). Southern Economic Association: 499–510. ISSN 0038-4038. JSTOR 1059226 . Retrieved 20 February 2022.
- ^ Samuelson, Paul A.(1966) "A Summing Up" Quarterly Journal of Economics 80:4, pp.568-583.
- ^ For example John R. Bell: Capitalism and the Dialectic - The Uno-Sekine Approach to Marxian Political Economy. London, New York 2009, p.106.
