ABSTRACT

This may or may not be the case. In this chapter I am not concerned with matters of history, development, or methodology. Rather, I want to clarify some of the issues that were at stake, and how they hang together. The debate centred on one particular type of model, a two-sector fixed-coefficients production model with heterogeneous capital. I will first describe the model and some of the associated assumptions, and then show how some of the characteristic propositions of neoclassical production theory follow from it. This should provide the reader with a frame of reference for understanding what the phenomena that lent their name to the debate are counterexamples against. Only at that stage will the phenomena themselves be introduced.