Refuting Samuelson’s capitulation on the re-switching of techniques in the Cambridge capital controversy

Paul A. Samuelson’s (1966) capitulation with his Austrian model during the so-called Cambridge controversy on phenomenon of re-switching techniques in capital theory had implications not only pointing at supposed internal contradiction marginal production and distribution but also pursuit vested interests academic political world to this day. The present paper is aimed demonstrating that was logically groundless from point view economic by considering interest rate role real price goods instead stationary rental prices as correctly suggested Leon Walras, Knut Wicksell, John Hicks, others. Because non-linear effects relative input prices, Sraffian noted range always disappears space corresponding equilibrium.