Named after
Swedish
Swedish or ' may refer to:
Anything from or related to Sweden, a country in Northern Europe. Or, specifically:
* Swedish language, a North Germanic language spoken primarily in Sweden and Finland
** Swedish alphabet, the official alphabet used by ...
economist
An economist is a professional and practitioner in the social sciences, social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
Knut Wicksell
Johan Gustaf Knut Wicksell (December 20, 1851 – May 3, 1926) was a Swedish economist of the Stockholm school. He was professor at Uppsala University and Lund University.
He made contributions to theories of population, value, capital and mon ...
(1851-1926), Wicksell's theory of capital examines
factor prices
In economic theory, a factor price is the unit cost of using a factor of production, such as labor or physical capital.
There has been much debate as to what determines factor prices. Classical and Marxist economists argue that factor prices de ...
as derived from the value of the marginal product.
Wicksell pointed out that in an
equilibrium
Equilibrium may refer to:
Film and television
* ''Equilibrium'' (film), a 2002 science fiction film
* '' The Story of Three Loves'', also known as ''Equilibrium'', a 1953 romantic anthology film
* "Equilibrium" (''seaQuest 2032'')
* ''Equilibr ...
situation, the
interest rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...
would exceed the value of the
marginal product of capital
In economics, the marginal product of capital (MPK) is the additional production that a firm experiences when it adds an extra unit of input. It is a feature of the production function, alongside the labour input.
Definition
The marginal product ...
because the aggregate stock of capital would be revalued due to changes in the interest rate.
EconomyProfessor.com
Retrieved 2008-05-29
References
Finance theories
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