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    Braun, Eduard 2018. Capital as in capitalism, or capital as in capital goods, or both?. The Review of Austrian Economics,
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The theory of capital as a theory of capitalism

  • EDUARD BRAUN (a1)
Abstract

Before economists and sociologists came up with their own definitions of the term ‘capital’, it was commonly understood as money invested in businesses by their owners or shareholders, and it continues to be understood this way in everyday business practice. In a recent article, Hodgson (2014) advises economists to return to this pre-Smithian usage of the term. This paper takes up Hodgson's demand and develops a theory of capital that is based upon this business notion of capital. It also argues that the Austrian theory of capital, if interpreted correctly, can serve as a starting point. Despite the conviction of its adherents to the contrary, the Austrian theory of capital is not universal or ahistorical, but dovetails with Hodgson's vision of an approach to capital that analyses historically specific features of capitalism.

Copyright
COPYRIGHT: © Millennium Economics Ltd 2016 
Corresponding author
*Email: eduard.braun@tu-clausthal.de
References
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Journal of Institutional Economics
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