Abstract

The first chapter of the second part of the book is devoted to the modelling of the theoretical framework expounded in the first part. A Neo‐Austrian theory of production, a sequential analytical framework, a decision process characterized by adaptive expectations and the presence of money, are the main analytical ingredients of the model. This portrays a ‘constraints‐decisions‐constraints’ sequence, where the consideration of both an intra‐ and an inter‐period sequence allows sketching out the interaction between the short and the long term. The full‐fledged working of the model engenders a complex dynamics that appears as the essence of structural change interpreted as a sequential process, and stresses the problem of the viability of the latter.