Preface

This little book was written with the purpose of helping to clarify some of the conceptual problems that surround the foundations of capital theory. Much of recent theories of growth, as well as the more traditional microeconomic theories of investment, depend on capital notions. While this essay does not attempt to come to grips substantively with these problems, it is hoped that its discussions will prove of value to workers in these fields.

The author’s debt to the literature is, despite the possibly over-critical tone of the essay, very great and very gratefully acknowledged. Despite the author’s dissatisfaction with much of the presentation of “Austrian” capital theory, it is from the great writers in this tradition, from Böhm-Bawerk, Fisher, and Wicksell, to Mises, Hayek, and Lachmann, that he has, directly or indirectly, learned most of what is here set forth.

The author is deeply grateful for research support that made this work possible. In particular are to be mentioned the Reim Foundation, and the Research Office of the Schools of Business of New York University. To Professor Robert Lindsay the author is deeply indebted for encouragement given in a number of ways. Some of the ideas set forth in this book were presented to a faculty seminar at New York University; the author’s thanks for helpful critical comments then expressed go particularly to Professors Solomon Fabricant and Arnold Sametz. Professor Mises kindly read the final manuscript draft and offered valuable criticism. To all these the author is conscious of a debt of gratitude; he holds none of them to blame for inadequacies in the finished product.

Nora Greig performed an efficient and expeditious task of typing the manuscript. The thanks due to the author’s wife for her help during the painful months prior to this book’s publication are not capable of being set down on paper.

Israel M. Kirzner