Kei Shibata

CAPITAL AND THE SUBSISTENCE-FUND

I once undertook to criticise the Bohm-Bawerkian theory of employment. I then endeavoured to prove that the theory contained certain special assumptions concerning the technical co-efficients of production and that the assumptions in question were responsible for the Bohm-Bawerkian conclusion that the elasticity of the demand for labour can never be smaller than I. Now my conclusions may possibly have been obscured by overlooking the fundamental difference between Capital taken in the usual sense and Subsistencefund on the one hand and the precise relation between the Bohm-Bawerkian structure of production and the Walrasian on the other. I should therefore like here to restate my criticism in a more convincing manner by taking these points into consideration.