The Nature and Implications of the Reswitching of Techniques

Abstract

By reswitching of techniques we mean the recurrence at different rates of interest of a whole matrix of activities or a "technique of production." The "Ruth Cohen Curiosum" may be considered a special case where only a single activity recurs.' We have analyzed the conditions under which reswitching can occur, which are perfectly general, the conditions under which it cannot occur, which are quite restrictive, and some of the important im- plications for capital theory..