BOHM-BAWERK AND SHIBATA ON POWER OR MARKET

In 1935 the Japanese economist Shibata criticized Bohm-Bawerk's discus sion to deny the role of power on market and argued that the validity of Bojhm-Bawerk's conclusion depends crucially on his special assumpti ons on the structure of production in his theory of interest. Unfortun ately, both Bohm-Bawerk and Shibata used in their discussions an unten able supposition that the value of heterogeneous capital, which depend s on values of endogenous variables, can be given exogenously. Our aim is to reconsider the problem in the light of a new interpretation of Bohm-Bawerk's theory of interest, which is free from this supposition.