THE THEORY OF VALUE, CAPITAL AND INTEREST: A New Approach

This text proposes a new economic theory, relevant to real-world economics. The book deals with the economy as a system which includes producers, consumers and a social regulating agency, rather than simply as an aggregate of individuals. Beginning with an essay on economic methodology which analyzes the underpinnings of neoclassical economics, the author presents a two-sector canonical model which is used to establish equilibrium prices and quantities in a stationary and growing economy. This thesis distinguishes two sources of growth - expansion of the labour force and technological progress - and also extend the author's model to include joint production and rent, and present a general case which allows for many consumer and producer goods.