ABSTRACT
“It is by reason,” wrote Keynes, “of the existence of durable equipment that the economic future is linked to the present” (1964, p. 146). It was Keynes’ opinion that by “the introduction of the concepts of user cost and of the marginal efficiency of capital” one could go beyond the limits of the static nature of classical economics and effectively model the intertemporal aspects of fixed capital and the expectations that surround it “whilst reducing to a minimum the necessary degree of adaption” from the classical theory (1964, p. 146).
