To read this content please select one of the options below:

The Use of Knowledge in Investment Theory

The Spatial Market Process

ISBN: 978-1-78190-006-2, eISBN: 978-1-78190-007-9

Publication date: 15 June 2012


The neoclassical theory of investments, as formulated by Dale Jorgenson (1963, 1967), can be expressed in a fairly straightforward way.1 Neoclassical formulations such as Jorgenson's were preceded by contributions by many influential economists. Both John Maynard Keynes and Irving Fisher, for example, argued that investments are made until the present value of expected future revenues, at the margin, equals the opportunity cost of capital. This means that investments are made until the net present value is equal to zero.


Eklund, J.E. and Larsson, J.P. (2012), "The Use of Knowledge in Investment Theory", Emanuel Andersson, D. (Ed.) The Spatial Market Process (Advances in Austrian Economics, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 335-351.



Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited