Economic Theory in the Twentieth Century, An Intellectual History - Volume I by Roberto Marchionatti

Author:Roberto Marchionatti
Language: eng
Format: epub
ISBN: 9783030402976
Publisher: Springer International Publishing

where x, y, and z are productive inputs (second-order goods in Menger’s terminology), and the right-hand side of the equality is the value of first-order goods produced by the combined inputs. Solving simultaneously gives the values of the inputs: x = 40, y = 60, and z = 70. Each input is thus ascribed a definite share in producing total value. Wieser calls the return to each share the “productive contribution” (Beitrag). The productive contribution of any element of production is “that portion of the return in which is contained the work of the individual productive element in the total return of production” (ibid., p. 88), and the sum of all the contributions “exactly exhausts the value of the total return” (ibid.).6

As has been noted, although Wieser develops Menger’s insights, in developing his model, he makes an assumption—that the economy is in equilibrium, thus implying that the values of inputs could be calculated simultaneously—that moves them in a direction that abandons Menger’s causal-genetic explanations and brings them closer to Walras’s marginalism.

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