Durable Goods and the Business Cycle

Spending on durable goods tends to be more cyclical than spending on non-durable goods and services as it can be more readily postponed in times of economic weakness. During the recent global economic slowdown, the decline in durable goods spending was a key transmission mechanism of the uncertainty associated with the global financial crisis to the broader economy, as households and businesses delayed purchases of durable goods.Australia; durable goods; machinery & equipment investment; business cycle

Easy Monitored Entangled States

We discuss the generation and monitoring of durable atomic entangled state via Raman-type process, which can be used in the quantum information processing.Comment: 9 pages, 2 figures, the previous title "Durable Entanglement in Atomic Systems" is replaced by new title, accepted to Appl. Phys. Let

Capital Stock Depreciation, Tax Rules, and Composition of Aggregate Investment

I estimate time varying aggregate capital stock depreciation rates for the post-war U.S. economy using capital-investment evolution equation along with the data on the annual net capital stock and corresponding quarterly gross investment series. I estimate depreciation rates of consumer durable goods, producer durable goods, and nonresidential business structures. The estimation results suggest that the three depreciation rate series have been behaving very differently over time. In particular, I find that over time the implied depreciation rate of nonresidential business structures has remained stable, the implied depreciation rate of consumer durable goods has been steadily declining, while the implied depreciation rate of producer durable goods has been increasing, especially during the last 10–15 years. These findings are interpreted in terms of the changes in the composition of the aggregate nonresidential business fixed and producer durable good capital stocks. In addition, I discuss the implications of the changes introduced during the 1980s in rules and regulations governing a depreciation accounting for tax purposes, and their effect on the estimates of capital depreciation rates derived in this paper. The main argument the paper makes is that technological progress may be leading to accelerated depreciation of producer durable goods and equipment since newer and more advanced technology makes older equipment obsolete. The empirical evidence reported in this paper supports this argument.Time Varying Depreciation Rate, Capital Stock, Consumer Durable Goods, Producer Durable Goods, Business Structures, Technological Progress

Durable Goods Inventories and the Volatility of Production: Explaining the Less Volatile U.S. Economy

Despite the important role played by durable goods production and inventory investment in the business cycle, theoretical models featuring durable goods inventories are rarely available in the literature. This paper provides a simple dynamic optimization model of durable goods inventories and applies the model to analyzing the behavior of durable goods production and sales. It shows that small change in demand shocks can have large effect on the volatility of production relative to that of sales. The more durable is the good, the stronger the effect is. Calibrated exercise shows that the well documented dramatic reduction of output volatility in the U.S. economy since 1984 may be attributable to a decrease in the persistence of demand shocks. The analysis complements and reinforces the analysis of Ramey and Vine (2003).

What really happened to consumption inequality in the US?

This paper considers data quality issues for the analysis of consumption inequality exploiting two complementary datasets from the Consumer Expenditure Survey for the United States. The Interview sample follows survey households over four calendar quarters and consists of retrospectively collected information about monthly expenditures on durable and non-durable goods. The Diary sample interviews household for two consecutive weeks and includes detailed information about frequently purchased items (food, personal cares and household supplies). Most reliable information from each sample is exploited to derive a correction for the measurement error affecting observed measures of consumption inequality in the two surveys. We find that consumption inequality, as measured by the standard deviation of log non-durable consumption, has increased by roughly 5% points during the 1990s

Durability of Output and Expected Stock Returns

The demand for durable goods is more cyclical than that for nondurable goods and services. Consequently, the cash flows and stock returns of durable-good producers are exposed to higher systematic risk. Using the benchmark input-output accounts of the National Income and Product Accounts, we construct portfolios of durable-good, nondurable-good, and service producers. In the cross-section, an investment strategy that is long on the durable-good portfolio and short on the service portfolio earns a risk premium exceeding 4 percent annually. In the time series, an investment strategy that is long on the durable-good portfolio and short on the market portfolio earns a countercyclical risk premium. We explain these findings in a general equilibrium asset-pricing model with endogenous production.

Reusable high-temperature heat pipes and heat pipe panels

A reusable, durable heat pipe which is capable of operating at temperatures up to about 3000 F in an oxidizing environment and at temperatures above 3000 F in an inert or vacuum environment is produced by embedding a refractory metal pipe within a carbon-carbon composite structure. A reusable, durable heat pipe panel is made from an array of refractory-metal pipes spaced from each other. The reusable, durable, heat-pipe is employed to fabricate a hypersonic vehicle leading edge and nose cap

Does Housing Wealth Make Us Less Equal? The Role of Durable Goods in the Distribution of Wealth

We study the role an illiquid durable consumption good plays in determining the level of precautionary savings and the distribution of wealth in a standard Aiyagari model (i.e. a model with heterogeneous agents, idiosyncratic uncertainty, and borrowing constraints). Transactions costs induce an inaction region over which the durable stock and the associated user cost are not adjusted in response to changes in income, increasing, on average, the volatility of non-durable consumption. The volatility of total consumption is then a function of the share of the durable good in the utility function and the width of the inaction region. We are particularly interested in parameterizations which increase the precautionary motive for saving through an increase in "committed expenditure risk". We find, for an empirically relevant share of durable consumption and for all transaction costs below an upper threshold, that the level of precautionary savings is increasing in the transaction costs. Transaction costs have only a modest impact on the degree of wealth dispersion, as measured by the Gini index, as the associated increase in savings is close to linear in wealth. While we are unable to match the dispersion of wealth in the data, we increase the dispersion over a single asset model (Gini index of .71 for financial assets and .37 for total wealth) and we are able to match the relative dispersion of financial to durable assets, i.e. we find financial assets much more unequal than durable assets. We also match the ratio of housing wealth to total wealth for the median agent. We calibrate the model to data from the PSID, the CES, and the SCFPrecautionary Savings, Wealth Distribution, Durable Goods

Durable antistatic coating for polymethylmethacrylate

A durable antistatic coating is achieved on polymethylmethacrylate plastic without affecting its optical clarity by applying to the surface of the plastic a low molecular weight solvent having a high electron affinity and a high dipole moment, such as acentonitrile or nitromethane alone or in the presence of photopolymerizable monomer. The treated polymethylmethacrylate plastic dissipates most of the induced electrostatic charge and retains its optical clarity. The antistatic behavior persists after washing, rubbing and vacuum treatment