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Er’el Granot

An Overlooked Scenario of “Reswitching” in the Austrian Structure of Production

Quarterly Journal of Austrian Economics

Author: Er’el Granot

Online Publish Date: May 21, 2020

Category: Business Cycles, Capital and Interest Theory, Production Theory

Abstract: Since Samuelson’s (1966) reswitching example in the 1960s, it became clear that the Average Production Period (APP) is not necessarily a decreasing function of the interest rate. Recently, Fillieule (2007) and Hülsmann (2010) have shown that Samuelson’s example is not a mere curiosity. They showed that in a reasonable production

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