Value & Capital, CHAPTER XV, Section 2

In this section the author notes that "the dynamic theory of production has been the occasion of a great controversy" in economic dynamics.  He identifies the "great name in this department of economics" as being Böhm-Bawerk, whose theory of production he terms the "Austrian theory."

The definition of capitalistic production as time-consuming production; of the amount of capital employed as an indicator of the amount of time employed; of the effect of a fall in interest on the structure of production as consisting in an increase in the amount of time employed; all these ideas give to the subject an apparent clarity which is, at first sight, irresistable.  The theory stands up very well to the more obvious objections which can be made against it; yet, as one goes on, difficulties mount up.

The author notes some of the criticisms that have been made against Böhm-Bawerk's theory by Knight and Kaldor but claims that "the main issue is still left unsettled."  He previews the discussion in upcoming sections by saying "I hope to show, that when we transcend ... artificially simple cases ... the central propositions change their character rather markedly."  In a satisfactory general theory of capital,  Böhm-Bawerk's theory is "valid as a limiting case, though not a very important case.  The general theory differs from Böhm-Bawerk's in some important respects."