Keynes and the concept of capital: Some epistemological observations in regard to the sraffian premises of the General Theory

Abstract

This article aims to examine the conception of the nature of capital used by Keynes in the General Theory, to show to what extent this concept is similar to Sraffa´s conception, and to highlight the implications related to this concept, in terms of structural instability. So I will study the mechanisms that explain the investment decision in an environment with strong uncertainty, the modalities of aggregation of different generations of capital and the instability of equilibrium. The convergence between the Keynesian and the Sraffian approaches comes from this common conception of capital. Finally, I will examine the implications in regard to the structure of the aggregate models.

JEL Classification: B41; E11; E12.