ABSTRACT
It is well known that the neo-Austrian theory is a powerful tool to study the structural change of ‘an economy which is [initially] in a steady state under an “old” technique; then, at time 0, there is an “invention”, the introduction of what, in some respect at least, is a new technology. Among the new techniques, which become available, there is one which, at the initial rate of wages, is the most profitable; so, for processes started at time 0 (or immediately after time 0) is adopted’ (Hicks, 1973 p. 81).
