The reswitching of techniques and its epistemological implications: a deepening of criticism

Vol. 41 No. 4 (2021)

Out-Dez/2021
Published November 11, 2021
PDF-English
PDF-English

How to Cite

Herscovici, Alain. 2021. “The Reswitching of Techniques and Its Epistemological Implications: A Deepening of Criticism”. Brazilian Journal of Political Economy 41 (4):797-814. https://doi.org/10.1590/0101-31572021-3156.

The reswitching of techniques and its epistemological implications: a deepening of criticism

Alain Herscovici
Full Professor, Department and Post-Graduation Program in Economics at the Federal University of Espírito Santo (UFES), Vitória-ES, Brazil. Coordinator of the Grupo de Estudo em Macroeconomia (GREM) and Grupo de Estudo em Economia da Cultura, da Comunicação, da Informação e do Conhecimento (GEECICC), UFES, and Researcher at CNPq (National Council for Scientific and Technological Development).
Brazilian Journal of Political Economy, Vol. 41 No. 4 (2021), Out-Dez/2021, Pages 797-814

Abstract

This paper aims (a) to explain the mechanisms from which the problem of
reswitching of techniques is formulated and (b) to analyze the implications with regard to
the general architecture of neoclassical macroeconomics. I will show how these elements
allow refuting the neoclassical theory of income distribution, and why they translate into
structural instability. In the first part, I will explain the mechanisms that correspond to
the problem of reswitching of techniques; in the second part, I will study the implications
linked to the reswitching, with regard to the determinants of income distribution and the
equilibrium stability.

JEL Classification: B41; E11; E13.


Keywords: Reswitching of techniques rent distribution structural instability