New Study Challenges Traditional Economic Theory on Capital and Equilibrium!
The paper argues that the conclusion of prof. Mandler on the thesis by Garegnani, Schefold, Parrinello is flawed. The equations of intertemporal general equilibrium are not the same as those of general equilibria without capital goods. The Walrasian treatment of the capital endowment is criticized for not being persistent enough. A numerical example shows that Mandler's claim about uniqueness of intertemporal equilibrium is based on a trick that avoids the production of capital goods in the last period.