Savings, investment and capital in a system of general intertemporal equilibrium

1. The criticism of the neoclassical theory based on the inconsistency of the concept of a ‘quantity of capital’ has been met from the orthodox side essentially with the claim that contemporary reformulations of the theory do not rely on any such concept. ¹ The present chapter is intended to show that the claim is unfounded and that the deficiencies of the concept undermine the reformulations no less than they do the traditional versions. ²