2025/06/24 by Daniele Girardi · 2 voices
Economics, Econometrics and Finance · #Capital Investment and Risk Analysis #Climate Change Policy and Economics #Economic theories and models
paper · doi:10.1080/09538259.2025.2512797
openalex publication_date 2025/06/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/04
This paper surveys the neoclassical theory of aggregate investment and its criticisms. We identify four main strands in neoclassical investment theory: (i) the traditional Wicksellian model; (ii) the Fisherian ‘array-of-opportunities’ approach; (iii) the Jorgensonian model; (iv) the now prevailing adjustment cost models. We summarize each approach, discuss the main conceptual issues, and highlight similarities and differences between them. We also provide a systematic summary and discussion of the main criticisms that have been leveled at each of these models and highlight some unresolved theoretical issues.