The reswitching of techniques and its epistemological implications: a deepening of criticism
Abstract
This paper aims (a) to explain the mechanisms from which the problem of
reswitching of techniques is formulated and (b) to analyze the implications with regard to
the general architecture of neoclassical macroeconomics. I will show how these elements
allow refuting the neoclassical theory of income distribution, and why they translate into
structural instability. In the first part, I will explain the mechanisms that correspond to
the problem of reswitching of techniques; in the second part, I will study the implications
linked to the reswitching, with regard to the determinants of income distribution and the
equilibrium stability.
JEL Classification: B41; E11; E13.
Keywords: Reswitching of techniques rent distribution structural instability