A model for a Representational Theory of Capital
Abstract
Once the idea about the representation in the abstract side of the economy of capital in the real side of the economy was stated, the purpose of this paper is to offer a formal model of what this “representational theory of capital” consists in. In a way, the idea that financial instruments are property titles representing claims over real goods is a commonsensical one if considered at microeconomic level; however, I argue that such concept of representation serves to foster our understanding at a macroeconomic level as well. Such claim, to my knowledge, is a novel one.
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