From The Austrian Economics Wiki, the global repository of classical-liberal thought
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| A '''Capital good''' is a good produced for the production of consumer goods. They are "produced [[factors of production]]." <ref>''Human Action: Scholar's Edition'' p.263. [http://www.mises.org/resources/3250 Human Action].</ref>
| | #REDIRECT [[Capital]] |
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| == Convertibility and Malinvestment ==
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| "Capital goods," says [[Mises]], "are intermediary steps on the way toward a definite goal." <ref>''Human Action: Scholar's Edition'' p.499. [http://www.mises.org/resources/3250 Human Action].</ref> Having a definite purpose, a capital good is not always readily transferable into other means of production. Since the value of a capital good is exclusively "from the point of view of the anticipated future state of the market,"<ref>''Human Action: Scholar's Edition'' p.502. [http://www.mises.org/resources/3250 Human Action].</ref> the inconvertibility of a capital good to other lines of business becomes [[malinvestment]], a central tenant of the [[Austrian Business Cycle Theory]].
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| ==References==
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| {{Reflist}}
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| ==Links==
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| * [http://en.wikipedia.org/wiki/Capital_goods Capital Goods] Wikipedia
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Latest revision as of 12:19, 24 February 2011
