Capital theory is a branch of economics of intense and immediate concern. This is particularly true for the economist involved in the special problems of practical affairs-capital budgeting, government expenditure decisions,and national development or growth strategies. The analysis provided in this book guides the understanding and application of such theories and strategies

The book is brief and comprehensive and offers a systematic treatment of the material. It is organized into two parts. Part 1 considers choice over time in the absence of risk and uncertainty and explains accepted economic analysis and practice: Part 2 attacks problems that cannot be resolved under the artificial assumption of certainty, showing that the central ideas are natural generalizations of those already developed.

Features:

1.Integrates capital theory with the results and methods of standard price theory.

2.Employs a variety of techniques: calculus, geometry, literary analysis.

3.Spells out the crucial role played by market imperfections and the vital need for future research.

4.Emphasizes the real theory of interest.

5.Offers frequent numerical examples and helpful chapter summaries