Karlheinz Muhr Library

The Complete “Austrian School of Economics” Collection


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Karlheinz Muhr Library
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The archive.

3,015 works, 150 years of economic thought. Each one summarized and searchable, with cited passages inside.

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1–1 of 1 matches · 3,015 works totalPage 1 of 1; every summary opens into its work.
  1. 1966
    Private and Public Consumption and Savings in the von Neumann Model of an Expanding Economy

    Private and Public Consumption and Savings in the von Neumann Model of an Expanding Economy

    Oskar Morgenstern; Gerald L. Thompson · 10 sections

    Production technology alone does not determine how an economy holds together or how fast it can expand. In this 1966 research report, Oskar Morgenstern and Gerald L. Thompson extend von Neumann’s growth model to distinguish the effects of private and public consumption and saving. Their example of wheat, entertainment and diamonds makes a precise point: consumer demand can connect sectors that production requirements leave separate. The extension also breaks the original model’s equality between expansion and interest factors. Using matrix games and numerical examples, the authors distinguish proving that equilibrium exists from explaining which equilibrium will prevail. Readers can discover how preferences and government allocations reshape a formal growth economy—and why identical technological and preference data may still leave its outcome undetermined.