Value & Capital, CHAPTER XVI -- PRICES AND THE PRODUCTION PLAN

In this first section of Chapter XVI, the author, Sir John Hicks gives an overview of the discussion the chapter will contain.  He starts by observing that the equilibrium and stability conditions worked out in the previous chapter for a dynamic plan of production "have of course identically the same role as the parallel conditions in static theory."  The current chapter will examine how a production plan changes when prices or price-expectations change.   The following chapter will look at the effects of changes in interest.  The parallelism between the dynamic problem of the production plan and the corresponding static problem will simplify the discussion, so that "the purely formal properties of technical substitution and technical complementarity" can be taken for granted, and the discussion can simply describe these properties "in dynamic terms."