Wicksell’s Theory Of Capital

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Definition: Wicksell’s Theory Of Capital

Wicksell’s Theory Of Capital
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Full Definition of Wicksell’s Theory Of Capital

Named after Swedish economist Knut Wicksell (1851-1926), Wicksell’s theory of capital examines factor prices as derived from the value of the marginal product.

Wicksell pointed out that in an equilibrium situation, the interest rate would exceed the value of the marginal product of capital because the aggregate stock of capital would be revalued due to changes in the interest rate.

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Definition Sources

Definitions for Wicksell’s Theory Of Capital are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th March, 2020 | 0 Views.