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]]," not raw natural resources or [[labor]].<ref name="Mises_capital">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap15sec2.asp XV. The Market], 2. Capital, [[Human Action]], online version, referenced 2011-02-04.</ref> They are also called '''producers goods'''.
| | #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 name="Mises_technology">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap18sec5.asp XVIII. Action in the passing of Time], 5. The Convertibility of Capital Goods, [[Human Action]], online version, referenced 2011-02-04.</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," the inconvertibility of a capital good to other lines of business becomes [[malinvestment]], a central tenant of the [[Austrian Business Cycle Theory]].<ref name="Mises_technology">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap18sec5.asp XVIII. Action in the passing of Time], 5. The Convertibility of Capital Goods, [[Human Action]], online version, referenced 2011-02-04.</ref>
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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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| {{Stub}}
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Latest revision as of 19:36, 6 February 2011
