Guided by the profit and loss system generated by the prevailing array of prices, the decisions of entrepreneurs give rise to a streamlined capital structure, where the underlying tendency is for each capital good
to be allocated in an optimal manner vis-a-vis consumer wants.
The winner's curse is said to characterize auctions in which winning bidders erroneously and systematically submit bids in excess of a capital good
's "true common value." The discovery of the "curse" arose from an inference of low returns on investment in petroleum leases acquired in competitive auctions.
where [k.sub.1], [k.sub.2], [k.sub.3] are three positive parameters, the conditions for local stability (which require that the eigenvalues of the Jacobian matrix of functions [E.sub.c], [E.sub.M] and [G.sub.c] with respect to [p.sub.c], i and [X.sub.cc] have a negative real part) are satisfied if [partial derivative][F.sup.h.sub.c]/[partial derivative]i < 0, that is, if the demand of households for the circulating capital good
is a decreasing function of the interest rate.
However a dip in shipments of non-defence capital goods
indicated that the uncertainty caused by the ongoing trade war continued.
Summary: New orders for key U.S.-made capital goods
rose modestly in July while shipments fell by the most in three years, pointing to continued weakness in business investment and a slowdown in economic growth in the third quarter.
But nondefense capital goods
orders excluding aircraft jumped 1.5% from the prior 0.2% gain (revised from 0.5%).
It is also the lowest figure since December 2016, as prices rose at a softer pace for both energy and capital goods
. June energy inflation stood at 2.2% from minus 1.4% in May, and capital goods
was 1.5%, unchanged month-on-month.
Merchandise exports inched up for the second straight month in May but imports declined also for two consecutive months as the delayed implementation of the 2019 national budget stalled importation of raw materials and capital goods
for infrastructure projects.
Industrial producer prices in the euro area in April 2019, compared with March 2019, fell by 1.5 percent in the energy sector, while prices rose by 0.1 percent for intermediate goods, capital goods
and durable consumer goods, and by 0.5 percent for non-durable consumer goods.
GLOBALLY, the engineering and capital goods
industry forms almost three quarters, and the textiles and clothing just around six per cent, of total world trade.
Monthly comparison by main industrial grouping and by Member State Industrial producer prices in the euro area in October 2018, compared with September 2018, rose by 2.7% in the energy sector, by 0.2% for capital goods
and by 0.1% for intermediate goods and durable consumer goods, while prices fell by 0.1% for non-durable consumer goods.
BOP deficit soars 4-fold in 10 months !-- -- Lawrence Agcaoili (The Philippine Star) - November 20, 2018 - 12:00am MANILA, Philippines Driven by the country's strong demand for vital raw materials and capital goods
from abroad, the government's balance of payments (BOP) deficit soared to $5.59 billion from January to October, almost four times the $1.73 billion shortfall incurred in the same period last year, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.