Representational Theory of Capital - by Leonidas Zelmanovitz (Hardcover)

About the Book

This book surveys the history of the idea of capital and offers a tool to its understanding. It uses philosophy, social ontology, legal theory, and economic reasoning, particularly macroeconomic concepts from financial theory, to create an integrated concept of capital. Such c...

Book Synopsis

This book surveys the history of the idea of capital and offers a tool to its understanding. It uses philosophy, social ontology, legal theory, and economic reasoning, particularly macroeconomic concepts from financial theory, to create an integrated concept of capital. Such concept is then applied to wealth creation and individuals' wellbeing.

Review Quotes

"What is capital? How do instruments represent it? Zelmanovitz's joint expertises in economics and philosophy enable him to answer profitably these key questions of capital theory. Some parts of economies are real (farms, machines, buildings, etc.) and some abstract (money, title deeds, bonds, etc.)--so a clear grasp of each and their relations is critical to the health of complex economies, especially against those who debase or otherwise play fast and loose with value."

Dr. Zelmanovitz's The Representational Theory of Capital advances a theoretical framework that not only helps to explain the relation between capital goods in an economy and certain instruments representative of property claims on those goods in the abstract side of the economy, but also suggests productive directions for future scholarship. Zelmanovitz is not just addressing fellow economist, however. Although this book is certainly not an introductory work, it is readily accesssible to readers who approach economics and political/financial institutions from an interdisciplinary persepctive. As such, Zelmanovitz's contribution is immense. Simply put: this is one of the most important and original books in decades.

Law & economics are generally understood as the application of concepts of microeconomics the analysis of law. What is unique in Representational Theory of Capital is that the author took an inverse course. Here, the legal institution of private property is brought to help the understanding of one of the most elusive concepts of economics: the concept of capital. As demonstrated in the book, with the use of the proposed model, the identification of the dual nature of capital, as both real and representative, has a potential to revolutionize macroeconomics. Aside from its contribution to economics, by expanding the frontiers of the discipline, this book is of particular interest to law & economics scholars.

About the Author

Leonidas Zelmanovitz is senior fellow at Liberty Fund.