Capital-Intensive Economic Theory

Context:
- It can (typically) involve the analysis of economies or industries where the production process requires large amounts of capital investment (compared to labor).
- It can (often) focus on the implications of capital intensity for factors such as cost structures, competitive dynamics, and technological innovation.
- It can (often) explore the relationship between capital intensity and economic variables like productivity, employment levels, and wage rates.
- It can be associated with Post-Labor Economic Theory.
- ...
Example(s):
- One that models the heavy machinery industry, which requires significant investment in equipment and machinery.
- One that models the petroleum refining industry, known for its high capital requirements for refinery construction and maintenance.
- One that models the semiconductor manufacturing industry, where the production of microchips involves substantial capital investment in sophisticated equipment.
- ...
Counter-Example(s):
- Labor Intensive Economic Theory, where the production process depends more on human labor than capital investment.
- Service-Oriented Economy, where economic value is primarily derived from services rather than capital-intensive manufacturing.
See: Economic Growth, Production Function, Technological Innovation, Cost Structure, Competitive Dynamics.

References

(Piketty, 2014) ⇒ Thomas Piketty. (2014). "Capital in the Twenty-First Century.” In: Harvard University Press.
- NOTE: Piketty examines the dynamics of capital accumulation and distribution and its impact on economic inequality.

(Romer, 1990) ⇒ Paul Romer. (1990). "Endogenous Technological Change.” In: Journal of Political Economy.
- NOTE: In this article, Romer discusses how technological advances, seen as a form of capital, can drive economic growth.

(North, 1990) ⇒ Douglas North. (1990). "Institutions, Institutional Change and Economic Performance.” In: Cambridge University Press.
- NOTE: North examines how institutions support complex economic activities, including capital-intensive industries.

(Chandler, 1977) ⇒ Alfred Chandler. (1977). "The Visible Hand: The Managerial Revolution in American Business.” In: Belknap Press.
- NOTE: Chandler discusses the rise of large-scale, capital-intensive business enterprises and their impact on economic growth.

(Leontief, 1966) ⇒ Wassily Leontief. (1966). "Input-Output Economics.” In: Oxford University Press.
- NOTE: This book explains Leontief's input-output model, which can be applied to understand the role of capital-intensive sectors in an economy.

(Arrow, 1962) ⇒ Kenneth Arrow. (1962). "The Economic Implications of Learning by Doing.” In: Review of Economic Studies.
- NOTE: Arrow's work explores the relationship between investment in knowledge and human capital and its impact on economic growth.

(Solow, 1956) ⇒ Robert Solow. (1956). "A Contribution to the Theory of Economic Growth.” In: Quarterly Journal of Economics.
- NOTE: This paper presents Solow's seminal growth model, highlighting the role of capital accumulation in economic growth.

(Schumpeter, 1942) ⇒ Joseph Schumpeter. (1942). "Capitalism, Socialism, and Democracy.” In: Harper & Brothers.
- NOTE: Schumpeter explores the process of technological innovation in capitalist societies, often requiring significant capital investment.

(Hicks, 1939) ⇒ John Hicks. (1939). "Value and Capital: An Inquiry into Some Fundamental Principles of Economic Theory.” In: Oxford University Press.
- NOTE: Hicks' work includes analysis relevant to the interaction between capital and labor in production.

(Marx, 1867) ⇒ Karl Marx. (1867). "Capital, Volume I.” In: Verlag von Otto Meissner.
- QUOTE: In this foundational work, Marx discusses the process of capital accumulation and its implications for production and economic structures.