Anomalous Switch Points

CSWP 76 (July 2026)

Author Robert L. Vienneau

Keywords Cambridge Capital Controversy; Fixed Capital; Rent

JEL B51; C67; D24; D33; Q13

This article presents examples of models of rent with decreasing wage frontiers; with unique, square cost-minimizing techniques at a given rate of profits; but without the wage maximization property. Anomalous switch points are highlighted, where an anomalous switch point has properties that contrast with generic switch points in models of circulating capital. This article presents a numerical example of a switch point along a single wage curve, with no other wage curve intersecting at the switch point. Other numerical examples are of switch points in which only the scale, not the operated processes, vary between the cost-minimizing techniques at the switch point. A fake switch point is presented in which prices vary only for goods which are not commodities under the non-cost minimizing technique, also known as ghost commodities.



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