Mini-review of Capital in Disequilibrium: The Role of Capital in a Changing World by Peter Lewin

This is a fantastic book that I highly recommend to anyone with a serious interest in Austrian capital theory. Lewin studied under Lachmann and applies many of the insights of his teacher in this book. He deals expertly with methodological issues such as the concept of equilibrium, explicating the various ways that equilibrium has been defined (he settles on Hayek’s definition as the most appropriate) and showing why a disequilibrium theory is necessary to understand capital theory in all its complexities. His review of the various theories of capital, from Adam Smith’s corn economy to John Hicks’ semi-Austrian ideas, is commendable for its ability to showcase the snippets of truth in each theory.

I found the chapters on the firm and human capital particularly interesting, partially because these two concepts lose much of their meaning within the formalism of neoclassical economics. The book touches on everything, from institutional theory to methodology to applied topics. Unfortunately, the book is hard to find and prohibitively expensive.