ABSTRACT
Capital formation is the major driving force of capitalist development. That is why the theory of investment lies at the heart of any comprehensive theory of capitalism. Post Keynesian economics challenges the neoclassical theory of capital formation and offers a viable and coherent alternative to it. One of the main features of Post Keynesian economics is its way of treating growth and distribution together. That is why pricing and investment are linked to each other in this school of thought. Alfred S. Eichner and Frederic S. Lee, among others, have made most important contributions to Post Keynesian investment and pricing theory. Their rich legacy in this area is the prime focus of the present chapter.
