Thursday, November 1, 2018

In 1953, Mrs. Robinson Launched A Frontal Attack on the Neo-Classical Production Function

The controversy began in 1953 with a frontal attack by Mrs Robinson on the 'neo-classical production function' as a macro-variable designed to show output as a function of labour and capital input. She showed that there is no such thing as a quantity of capital, hence no measurable input of it.

--Ludwig M. Lachmann, Macro-economic Thinking and the Market Economy: An Essay on the Neglect of the Micro-Foundations and Its Consequences, Hobart Paper 56 (London: Institute of Economic Affairs, 1973), 23.

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