The Wicksell effect is the combination of a price effect and a real effect on the valuation

Valuation (finance)

In finance, valuation is the process of estimating what something is worth. Items that are usually valued are a financial asset or liability. Valuations can be done on assets or on liabilities...

 of changes in the capital stock. An important implication of the effect is that the valuation of the capital stock is extremely problematic in all realistic situations. The price effect involves a reevalutaion of the inventory of capital good

Capital good

A capital good, or simply capital in economics, is a manufactured means of production. Capital goods are acquired by a society by saving wealth which can be invested in the means of production....

s due to new prices. The real effect due to the price weighted sum of changes in the physical quantities of different capital goods. The term itself was introduced by Uhr(1951) and its importance noted by both Joan Robinson

Joan Robinson

Joan Violet Robinson FBA was a post-Keynesian economist who was well known for her knowledge of monetary economics and wide-ranging contributions to economic theory...

(1956) and Trevor Swan

Trevor Swan

Trevor Winchester Swan was an Australian economist. He is best known for his work on the neoclassical model of economic growth, published simultaneously with that of Robert Solow, for his work on integrating internal and external balance, represented by the Swan diagram and for pioneering work in...

(1956).