by Strigl
[Title Page and Publication Metadata]: Title page and publication details for Richard von Strigl's 'Zeit und Produktion', published in the Zeitschrift für Nationalökonomie in 1935, featuring editorial board members like Hans Mayer and Oskar Morgenstern. [Section I: Defense of the Austrian Capital Theory]: Strigl responds to Frank Knight's critique of the 'prevailing capital theory' and Eugen von Böhm-Bawerk's concept of roundabout production. He argues that while some traditional formulations may be flawed or prone to misinterpretation, the core relationship between time and capital-intensive production remains essential for explaining interest. [Section II: The Role of Original Factors and Binding Time]: Strigl addresses the assumption that capital goods are produced by labor and primary factors. He introduces the concept of 'Bindungszeit' (binding time) to describe the duration between the application of labor and the realization of the final product, using a hypothetical vertical trust to illustrate how capital goods are essentially concretized labor applied over time. [Section III: Productivity of Time and the Law of Diminishing Returns]: Strigl develops a theory of capital based on the productivity of binding time. He argues that extending binding times increases output, but this process is subject to the law of diminishing returns. He provides a formal cost calculation formula integrating labor costs and interest costs (Zinskostenelement), and explains how interest rates are determined by the marginal productivity of these time-based elements. [Section IV: Market Prices of Capital Goods and Technical Progress]: This section integrates the previous abstract analysis into a market framework where capital goods are bought and sold. Strigl explains that capital goods are intermediate stages in cost calculation and that their value must eventually align with their cost of production (labor plus interest). He also discusses how technical progress and rationalization affect the use of capital and binding times, noting that 'roundaboutness' is best understood as the accumulation of time-based cost elements. [Section V: Original Factors vs. Reproducible Capital and Conclusion]: Strigl distinguishes between original factors (land and labor) and reproducible capital goods. The central problem of capital is its necessity for reproduction, which requires the ongoing application of both original factors and time-based interest elements. He concludes by linking these concepts to the orientation of demand in time and the historical wage fund theory (Lohnfondstheorie).
Title page and publication details for Richard von Strigl's 'Zeit und Produktion', published in the Zeitschrift für Nationalökonomie in 1935, featuring editorial board members like Hans Mayer and Oskar Morgenstern.
Read full textStrigl responds to Frank Knight's critique of the 'prevailing capital theory' and Eugen von Böhm-Bawerk's concept of roundabout production. He argues that while some traditional formulations may be flawed or prone to misinterpretation, the core relationship between time and capital-intensive production remains essential for explaining interest.
Read full textStrigl addresses the assumption that capital goods are produced by labor and primary factors. He introduces the concept of 'Bindungszeit' (binding time) to describe the duration between the application of labor and the realization of the final product, using a hypothetical vertical trust to illustrate how capital goods are essentially concretized labor applied over time.
Read full textStrigl develops a theory of capital based on the productivity of binding time. He argues that extending binding times increases output, but this process is subject to the law of diminishing returns. He provides a formal cost calculation formula integrating labor costs and interest costs (Zinskostenelement), and explains how interest rates are determined by the marginal productivity of these time-based elements.
Read full textThis section integrates the previous abstract analysis into a market framework where capital goods are bought and sold. Strigl explains that capital goods are intermediate stages in cost calculation and that their value must eventually align with their cost of production (labor plus interest). He also discusses how technical progress and rationalization affect the use of capital and binding times, noting that 'roundaboutness' is best understood as the accumulation of time-based cost elements.
Read full textStrigl distinguishes between original factors (land and labor) and reproducible capital goods. The central problem of capital is its necessity for reproduction, which requires the ongoing application of both original factors and time-based interest elements. He concludes by linking these concepts to the orientation of demand in time and the historical wage fund theory (Lohnfondstheorie).
Read full text