The control structure over money and real assets is considered in the process of cost innovation. The work here contrasts with the first part of this paper where the emphasis was on the physical aspects of innovation. Here the emphasis is primarily on the money supply aspects of innovation. We...

Modifying a parallel dynamic programming approach to a simple deterministic economy, we consider the effect of an innovation in the means of production. The success of the innovation is assumed to depend on the availability of financing, locus of financial control, the amount of resources...

Classical political economy was underpinned by a shared view of the economy as a circular flow. This begged the question of how the value of produce can exceed the value of factor inputs: the ‘Profit Puzzle’. In this paper we advocate an understanding of the Profit Puzzle as a monetary...

A discussion is given of the problems involved in the formal modeling of the innovation process. The link between innovation and finance is stressed. The nature of how the circular flow of funds is broken and the role of finance in evaluation and control is discussed.

Summary Based on the original version of Stützel’s habilitation thesis, a so far neglected issue of circular flow equilibrium is considered: the microeconomic transactions during the production period of the neoclassical model of general equilibrium. The specific equilibrium conditions for...

Based on the original version of Stuuetzel’s habilitation thesis, a so far neglected issue of circular flow equilibrium is considered: the microeconomic transactions during the production period of the neoclassical model of general equilibrium. The specific equilibrium conditions for the...

This paper compares Leontief's 1928 PhD thesis and Sraffa's work in Cambridge in 1927-1928 as reconstructed from Sraffa's unpublished papers. Both authors showed that relative prices and the interest rate can be determined exclusively in terms of the observable amounts of commodities produced...

This paper discusses the roots of input-output analysis in 'classical' economics. The authors considered include Petty and Cantillon; Quesnay, the physiocrats and their critic Isnard; Smith, Ricardo, Torrens and Dmitriev; Marx, von Bortkiewicz and von Charasoff; Leontief; and Remak. It is argued...