HAAVELMO (Trygve).
A Study in the Theory of Investment.
A seminal monograph by the Norwegian economist Trygve Haavelmo, recipient of the 1989 Nobel Prize in Economic Sciences ’for his ‘clarification of the probability theory foundations of econometrics and his analyses of simultaneous economic structures.’
The ‘main objective’ of the present work ‘is to provide a firmer microeconomic foundation for the macroeconomic theory of investment demand. To this end Haavelmo probes deeply into capital theory, emphasizing strongly, however, that a theory of optimum capital use does not in itself provide a theory of investment. This insight, and his clear statement of what has since been known as the neoclassical theory of capital accumulation, has been a major influence on late work in this area, both theoretical and applied’ (New Palgrave).
