Capital in Disequilibrium

Drawing on the work of the Austrian School and its heirs, Capital in Disequilibrium develops a modern, systematic version of capital theory in order to suggest a new approach to the subject of economics.
Economists are rediscovering capital theory in the wake of the failure of traditional macroeconomic approaches to adequately explain unemployment, economic development and productivity. Drawing on the work of the Austrian School and its heirs, this text develops a modern, systematic version of capital theory in order to suggest a new approach to the subject of economics. Peter Lewin argues that approaches based on equilibrium constructs ignore the crucial role of technological innovation in markets and proposes that economic theory proceeds from the assumption of disequilibrium. It is only in this way that we can understand economic evolution and the role of capital in a rapidly changing world. These insights are extended in a consideration of human capital, business cycles and the economics of institutions. The book is designed for both researchers and practitioners alike.