ABSTRACT
Knut Wicksell read widely and with a singularly open mind the works of the English classical and neo-classical economists, and of the Austrian and Walrasian schools. Production theory and capital and interest theory will be treated, and his general theory of distribution will be taken up, since it is built upon the Eugen Von Bohm-Bawerkian theory of capital. Wicksell devotes little attention to the allocation of resources between industries because his analysis is almost always based upon the individual plant or, what is equivalent, the one-commodity economy. An acceptance of complete variability is nevertheless deeply imbedded in his theory of distribution. In the presentation of Wicksell's theory of distribution that he has a clear and correct mathematical statement of the law of diminishing returns for all factors of production. Wicksell is the great follower of Böhm-Bawerk's theory of capital and interest. In the field of production theory, Wicksell's acceptance of Böhm-Bawerk's theory is virtually complete.
