Capital Structure and Economic Transition

This paper discusses the general theory of capital structure by distinguishing between technological constraints and behavioural (or institutional) conditions. In particular, the paper examines the relationship between length of time period and capital structure, and considers the relationship between complementarities, bottlenecks and constrained transitions. The Hicksian prototype of the analysis of constrained transitions is compared with alternative approaches to traverse theory , and in particuloar with Lowe's and Quadrio Curzio's theoretical schemes.