On Some Unresolved Questions in Capital Theory: An Application of Samuelson's Correspondence Principle*

Abstract

In the mid-1960's two quite separate but fundamental questions in capital theory were first debated in this Journal. On the one hand, the original paper by Levhari (1965) gave rise to the widely cited series of papers published jointly in November, 1966, as "Paradoxes in Capital Theory: A Symposium," which has since spawned dozens of articles and several books.1 This debate now constitutes a crucial part of "The Cambridge Controversy." On the other hand, that same November, 1966, issue of this Journal also contained Hahn's seminal paper on the dynamic properties of heterogeneous capital good models, and subsequent research on "the Hahn problem" has been voluminous, continuing to this time...