Thermodynamics and Value of Capital Goods R Banerjee HRISHIKES BHATTACHARYA (Towards a Theory of the Value of Capital: A Techno- Economic Approach', EPW, Review of Industry and Management, November 26) attempts to construct a theoretical framework for determining the value of a capital good. The author claims to be provoked by the "a priori assumption of exponential decay in capital goods" made in most studies with no theoretical justification. He then proceeds to develop a theory which itself is based on similar assumptions disguised in a veneer of thermodynamic respectability.
