Mister Keynes & Capital

“[Keynes’s] modern theory of investment…Conceiving of investment as simple growth of a stock
of homogeneous capital, is ill-equipped to cope with situations in which the immobility of
heterogeneous capital resources imposes a strain on the economic system. In particular, it can
tell us little about the ‘inducement to invest’ in a world where scarcity of some capital
resources co-exists with abundance of others.”

Ludwig M. Lachmann (1948, p. 698), Investment Repercussions, Quarterly Journal of
Economics 63, November.