Econometrica: May, 1971, Volume 39, Issue 3

Shiftable versus Non-Shiftable Capital: A Synthesis

https://doi.org/0012-9682(197105)39:3<511:SVNCAS>2.0.CO;2-D
p. 511-529

Martin L. Weitzman

Non-transferable capital is an essential feature of the Fel'dman two-sector growth model. This paper is primarily an answer to the following question. Given that capital is really partially shiftable between its two sectors, when can the Fel'dman model be meaningfully used?