I guess I'm lost here. The Cambridge debate was about the relationship
between certain aggregate measures of capital and their respective
distributional variables. Why wouldn't relative "factor prices" affect the
choice of technique on a disaggregated level?
Steve Cullenberg
>A useful outcome of the cambridge debate was that because of the
>possibilities of reswitching and reverse capital deepening, it is logically
>impossible to establish a positive monotonic function such that K/L =
>f(w/r). Doesn't this alert us to look elsewhere regarding the incentives for
>technical change?
>
>peace, pat mason
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