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Durable Goods (durable + goods)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting61%
Humanities and Social Sciences15%

Selected Abstracts

Inflation Stabilisation with Durable Goods and Endogenous Time Preference,

THE ECONOMIC RECORD, Issue 274 2010
ARMAN MANSOORIAN
We consider inflation stabilisation policies for a small open economy with an endogenous time preference when consumption exhibits durability. The time preference effect and the durability effect have competing influences on the adjustment of consumption expenditures, which will likely exhibit an initial boom followed by a recession. Further, inflation stabilisation leads to an increase in labour supply and a boom in investment and output. The country experiences a sharp deterioration in its net foreign asset position. [source]

Durable Goods, Commitment Power and Public Monopolies

THE MANCHESTER SCHOOL, Issue 6 2003
Gregory E. Goering
Since many publicly owned firms manufacture a durable product we examine a simple two-period, constant returns technology, durability choice monopoly model under public ownership. Various types of firm commitment ability are analyzed. The model suggests that many of the standard results of public ownership are not obtained when output is durable. Product durability is shown to be an important factor for public firm subsidization that is independent of the traditional economies of scale rationale. We show that this durable goods subsidization problem is due solely to the public firm's potential commitment problems with buyers. [source]

Assessing the Temporary VAT Cut Policy in the UK,

FISCAL STUDIES, Issue 1 2009
Richard Blundell
H2; H3; E21 Abstract This paper concerns the likely impact of a temporary VAT cut stimulus policy on consumer demand in the UK. It suggests that around 75 per cent of the VAT reduction will be passed on to consumers and that consumers will react by maintaining their expenditure levels and therefore increasing their demand for consumption goods. The uncertainty caused by the downturn makes this a more muted impact than we might have hoped, especially on the demand for durable goods. Nevertheless, it is a substantive impact. In general, the uncertainty caused by the recession will tend to reduce the impact of any stimulus package. It is also argued that synchronising the subsequent rise with the economic upturn is critical. [source]

The Use of Remittance Income in Mexico

INTERNATIONAL MIGRATION REVIEW, Issue 4 2007
Jim Airola
Immigration affects sending countries through the receipt of remittance income. The impact of these cash transfers on households and communities has brought attention to remittances as a development mechanism. This study attempts to understand the degree to which household consumption is affected by the receipt of remittance income and the ways in which the broader communities may be impacted. Using household income and expenditure data for Mexico, expenditure patterns of remittance-receiving households are analyzed. Regression analysis indicates that remittance-receiving households spend a greater share of total income on durable goods, healthcare, and housing. [source]

Energy Price Shocks and the Macroeconomy: The Role of Consumer Durables

JOURNAL OF MONEY, CREDIT AND BANKING, Issue 7 2008
RAJEEV DHAWAN
energy prices; business cycles; durable goods We create a model with a distinction between investment in consumer durables and capital goods, as well as energy use by households and firms, to evaluate the importance of energy price shocks for output fluctuations. Simulation results indicate that this economy has a smaller proportion of output fluctuations attributable to energy price shocks than one without durable goods and household energy use. We show that an energy price hike is absorbed by reducing investment in durables more than in fixed capital. This rebalancing effect cushions the hit to future production. Thus, productivity shocks remain the prime driver for output fluctuations. [source]

Maintenance contracts for leased goods: their role in creating brand loyalty

MANAGERIAL AND DECISION ECONOMICS, Issue 7 2000
Julie Hunsaker
Using a two-period switching cost model, this paper compares rental profit with sales profit in a framework in which duopolists produce horizontally differentiated durable goods. Rental firms use maintenance contracts that stipulate that repeat customers pay a lower fine per unit of damage than do those customers who switch to a rival firm. In the sales regime, firms give loyal customers a discount on their second period prices. If switching costs are zero, sales profit equals rental profit. For positive and identical switching costs, either regime can dominate. As the exogenous rate of depreciation falls, rental profit exceeds sales profit. Copyright © 2000 John Wiley & Sons, Ltd. [source]

Infinite-horizon optimal advertising in a market for durable goods

OPTIMAL CONTROL APPLICATIONS AND METHODS, Issue 6 2005
Thomas A. WeberArticle first published online: 24 AUG 200
Abstract In this paper we analyse the optimal infinite-horizon advertising policy of a monopolist firm in a market for durable goods, based on classic models by Vidale,Wolfe (Oper. Res. 1957; 5(3):370,381) and Nerlove,Arrow (Economica 1962; 29(114):129,142). A set of necessary conditions for optimality generalizing previous results is provided for the resulting non-convex system. In addition, we establish local (and in some cases global) asymptotic convergence of an optimal trajectory towards the unique optimal steady state. Copyright © 2005 John Wiley & Sons, Ltd. [source]

Optimal sequence of landfills in solid waste management

OPTIMAL CONTROL APPLICATIONS AND METHODS, Issue 5-6 2001
Francisco J. André
Abstract Given that landfills are depletable and replaceable resources, the right approach, when dealing with landfill management, is that of designing an optimal sequence of landfills rather than designing every single landfill separately. In this paper, we use Optimal Control models, with mixed elements of both continuous-and discrete-time problems, to determine an optimal sequence of landfills, as regarding their capacity and lifetime. The resulting optimization problems involve splitting a time horizon of planning into several subintervals, the length of which has to be decided. In each of the subintervals some costs, the amount of which depends on the value of the decision variables, have to be borne. The obtained results may be applied to other economic problems such as private and public investments, consumption decisions on durable goods, etc. Copyright © 2001 John Wiley & Sons, Ltd. [source]

Remitting the gift: Zambian mobility and anthropological insights for migration studies

POPULATION, SPACE AND PLACE (PREVIOUSLY:-INT JOURNAL OF POPULATION GEOGRAPHY), Issue 1 2005
Lisa Cliggett
Abstract This article brings together anthropological theories of gift exchange and ethnographic data on migrant gifting (,remitting') in order to understand the core of investing in social relations through remitting practices. Migration literature from throughout the developing world documents important patterns of remitting that furthers our understanding of how migrants' earnings help rural investment. In contrast to the majority of migration literature, scholars working in different regions of Zambia have documented migration patterns and remittance practices that do not echo the documented findings from other regions of the developing world. In Zambian migration, remittances consist more of food, ,town goods' or cash, rather than the larger sums of money or durable goods that other migration studies describe. The Zambian literature also documents cases of non-remitting. Rather than provide significant support to relatives in sending communities, Zambian migrants invest in social networks over time through ,gift-remitting'. These ,gift-remittances' facilitate options to return to home communities, or to maintain mutually beneficial social ties for both migrants and relatives in home villages. These findings compel policies directed towards enhancing migrants' remitting power to consider the core social foundation of their ties to home, and how investing in social relations can be incorporated into policy development. The article draws on fieldwork with the Gwembe Tonga people of Zambia's Southern Province since 1994, and recent ethnographic literature from Zambia. Copyright © 2005 John Wiley & Sons, Ltd. [source]

On the Effects of Inflation Shocks in a Small Open Economy

THE AUSTRALIAN ECONOMIC REVIEW, Issue 3 2007
Sushanta K. Mallick
The effects of monetary policies remain always an important topic in macroeconomics. In the literature (closed and open economy), there is no theoretical as well as empirical consensus regarding the effects of monetary policies. In this paper we examine the real effects of inflation in an open economy. Australia is a classic example of a small open economy and is known to exercise inflation targeting. Using quarterly data from Australia and employing vector autoregressive (VAR) analysis, we provide evidence that inflation, both in the short and long run, negatively affects durable and non-durable consumption and investment, and has a positive effect on the current account. Further, we show that consumption of durable goods is more sensitive than the consumption of non-durables during the initial periods following inflationary shocks. [source]

THE SOURCES OF AGGREGATE PRODUCTIVITY GROWTH: US MANUFACTURING INDUSTRIES, 1958,1996

BULLETIN OF ECONOMIC RESEARCH, Issue 4 2008
Jens J. Krüger
L16; O12; O33; L60 ABSTRACT The sources of aggregate productivity growth are explored using detailed data for four-digit US manufacturing industries during 1958,96 and a decomposition formula that allows us to quantify the contribution of structural change. Labour productivity as well as total factor productivity are considered with either value-added or employment shares serving as aggregation weights. It is shown that structural change generally works in favour of industries with increasing productivity. This effect is particularly strong in the years since 1990, in high-tech industries and in durable goods producing industries. The impact of the computer revolution can be clearly identified. [source]

On durable goods markets with entry and adverse selection

CANADIAN JOURNAL OF ECONOMICS, Issue 3 2004
Maarten Janssen
The model is a dynamic version of Akerlof (1970). Identical cohorts of durable goods, whose quality is known only to potential sellers, enter the market over time. We show that there exists a cyclical equilibrium where all goods are traded within a finite number of periods after entry. Market failure is reflected in the length of waiting time before trade. The model also provides an explanation of market fluctuations. JEL classification: D82 A propos des marchés de biens durables quand il y a entrée de nouveaux commerçants et sélection adverse., Les auteurs analysent la nature du commerce et du triage engendrés par le mécanisme dynamique des prix dans un marché concurrentiel de biens durables quand il y a sélection adverse et entrée exogène de nouveaux commerçants dans le temps. Ce modèle est une version dynamique du modèle d'Akerlof (1970). Des cohortes identiques de biens durables, dont la qualité est connue seulement des vendeurs potentiels, arrivent sur le marché dans le temps. Il semble qu'il y ait plus de commerce actif que ce qui est prévu par un modèle statique. En particulier, on montre qu'il existe un équilibre cyclique où tous les biens sont transigés à l'intérieur d'un nombre fini de périodes après leur arrivage et que, à chaque phase du cycle, l'éventail de qualité des biens transigés s'accroît. Les commerçants qui transigent des produits de plus haute qualité attendent plus longtemps et l'imperfection du marché se traduit par la longueur de temps d'attente avant la transaction. Le modèle fournit aussi une explication des fluctuations du marché. [source]