Many recent production/growth models use a property, which we call the 'Hicksian Case', that, in instantaneous production, interest accruing to a non-durable input (an input used up in an instant) is negligible over the unit period of production (an instant of time). No proper proof of the Hicksian Case has been put forward in the literature. We provide a rigorous proof of the case. Then, following the same logic as is used for the proof, we demonstrate that instantaneous production is logically impossible in a 'no-nonsense' capitalist economy.
ASJC Scopus subject areas
- Economics and Econometrics