Abstract

This article examines Turgot’s capital theory. It calls attention for his methodological
procedure in deriving first the very concept of capital out of the analysis of circulation,
for then to inquire on its possible employments, among them that of acting as advances
in production. In doing so, Turgot changes into a logical result what was a mere supposition
of the physiocratic analysis, namely, the existence of a class of entrepreneurs as the owners
of required amount of resources for carrying on production.

JEL Classification: B11; B31.