Competition and Technical Change in an Aggregate Circulation Framework
Author(s)
Weeks, John
Abstract
Technical change is the most important source of discontinuities within economic processes. Technical innovation creates the quantitative difference between the value of existing means of production and the part of their value which is reappropriated thanks to the sale of final goods produced with these means of production and the work which is associated with it. Central elements for the modelisation of these interactions are competition and money. Competition represents the driving force of technical change: monetary phenomena can explain the possible disjunction between the value which is incorporated in means of production and the reappropriated value.
