Journal Article Portfolio Theory, Asset Demand and Taxation: Comparative Statics with Many Assets Get access Agnar Sandmo Agnar Sandmo Norwegian School of Economics and Business Administration, Bergen Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 44, Issue 2, June 1977, Pages 369–379, https://doi.org/10.2307/2297074 Published: 01 June 1977

Journal Article Anomaly and Stability in the Theory of Externalities Get access Agnar Sandmo Agnar Sandmo Norwegian School of Economics and Business Administration, Bergen Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 94, Issue 4, June 1980, Pages 799–807, https://doi.org/10.2307/1885670 Published: 01 June 1980

The purpose of this paper is to present a coherent view of the neoclassical model of capital accumulation as a basis of for a theory of investment of the firm. The model is formulated in discrete time, which brings out more clearly than the usual continuous-time version the crucial distinction between the short and the long run. In the long run there can be no stable relationship between investment and the rate of interest. However, in the short run there does exist a determinate relationship between investment and the rate of interest, and this is consistent with the Keynesian hypothesis.