INVESTMENT CRITERIA AND CAPITAL INTENSITY ONCE AGAIN.

The article provides various clarifications on the previous study about investment criteria and capital intensity. The author intended to clarify the issues on the right method of allocating investment which is to choose the investment pattern that would be selected by the market mechanism, the model presented in the previous study that divided wage and profits, establishing reinvestment as an independent criterion wherein assumption that all profits are reinvested must be discarded, the reliability of the reinvestment criterion, the emphasis on reinvestment which yielded an argument for investment in more capital-intensive industries than would be indicated by a pure market calculation, the implications of the thesis for another investment criterion and social marginal productivity.