Questions tagged [definition]
Questions about how economic terms, quantities, or ideas can be defined.
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32 views
What's the name of this particular economics phenomenon (loss and increase of value over many years)?
I have almost no knowledge of economics so I decided to ask you here. Sorry for tags but I didn't have any idea what should I use.
Some things loss its value due to quality and functionality increase. ...
3
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1answer
81 views
What are the meanings of “difference-in-differences” and “causal estimand”?
In one discussion, I saw the answer containing two words that I think can be used interchangeably, but I am not sure if it's the case.
I simply state in other posts that the "generalized" **...
2
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1answer
34 views
Prices in 'The Wealth of Nations'
While reading 'The Wealth of Nations', I have come across terms like nominal price, consumer price, actual price, exchange price.
What each means? What is the difference between them?
Note: I am ...
8
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1answer
209 views
Is there a formal definition of opportunity costs, economic costs, and/or economic profits?
[Edited to remove a mistake in a definition and some typos.]
According to various econ textbooks (e.g. this one), there is a fundamental distinction between economic profit and accounting profit:
(i) ...
3
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0answers
23 views
What is normal capacity?
The average variable cost will generally fall as output increases from zero to the normal capacity output due to the occurrence of increasing returns. But beyond the normal capacity output average ...
0
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1answer
33 views
What is meant by the sentence in the context of “Monetary Policy in India”? [closed]
To quote from the book, "Indian Economy by Nitin Singhania," this is what I found out,"It is a macroeconomic policy used by RBI to influence the supply of money." What is meant by ...
2
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1answer
45 views
Having difficultly to understand two indices with regard to inflation
What are these terms "provisional headline inflation" and "imputed index" used to predict in terms of inflation?
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1answer
23 views
Is 'price hike' synonymous with 'price rise'?
Since my childhood I have a belief that in economics price rise and price hike synonymous with each other.
Moreover, the Collin dictionary strengthens by belief:
Hike
But what you experts have to say--...
3
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2answers
192 views
How to justify the treatment and control groups for Difference-In-Difference with staggered implementation of laws?
A. Background:
Dong, 2019 and Dasgupta, 2019 used the same way to generate the treatment and control groups because they all learn about the impact of the same laws on different dependent variables. I ...
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1answer
34 views
What does 'establishment' mean in real estate industry?
I read data on real estate industry and there is a table titled "establishments". The title of it is "number of establishments in real estate for all establishment sizes". Is '...
4
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0answers
47 views
Joint significance test in a difference-in-difference setting
I ran following difference-in-difference regression in software and have some questions about the interpretation of the resulting coefficients and their (joint) significance:
$$
P_{it} = \gamma_i + \...
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1answer
209 views
Comparing & contrasting decision problems and normal games
I am trying to compare and contrast between decision problems and normal games. Are there any key concepts I should know? Any help would be greatly appreciated.
2
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1answer
181 views
What are the differences between “Crawling peg” and “Crawl-like arrangement”?
The IMF AREAER 2019 classifies 3 countries as "crawling" and 18 as "crawl-like". It's not clear to me though how these classifications were made and why they couldn't be switched ...
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22 views
What are a “nominal anchor” and an “intermediate target”? Any difference between them?
From the IMF:
The exchange rate thus serves as the nominal anchor or intermediate target of monetary policy.
The monetary authority uses its instruments to achieve a target growth rate for a ...
0
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1answer
65 views
What is the term for workers who outputs more than other workers at the same wage thus depressing wage for others? [closed]
What is the specific term for this worker:
A worker who outputs more than other workers at the same wage, therefore now the owner doesn't have to pay workers as much since he gets the same total ...
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0answers
12 views
Categorizing countries as industrial vs emerging vs developing
Raghuram Rajan (July 2020):
with respect to fiscal support to deal with the pandemic and economic crisis, industrial economies have, on average, deployed 20% of GDP worth of measures; for emerging ...
2
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1answer
21 views
Name for the intentional reduction in quality in a non-software, price discrimination setting
Is there a general term in economics for the intentional reduction in quality to reduce deviation to the worst alternative in price discrimination? Like "crippleware," but applicable in non-...
5
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2answers
135 views
What is the service equivalent of an economic 'bad'?
In general conversation, the terms "goods and services" are often used together. In economics, these terms have the following meanings:
Goods:
In economics, goods are items that satisfy ...
5
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1answer
137 views
What does 'continuation' as in continuation games, strategies, plays, etc. exactly mean?
I am in my first course in grad level game theory. While I was reading through Fudenberg and Tirole's Game Theory, I constantly come into contact with the word 'continuation' to describe some games ...
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1answer
45 views
Finance vs. financial economics (terminology)
What is the difference between finance and financial economics?
E.g. we have tags for both* and I wonder when to use which, but not only.
*And one more on financial markets – see this thread on Meta ...
3
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1answer
32 views
Which are commonly used economics dictionaries?
Do economic dictionaries distinguish between different interpretations of terms in different economic schools of thought, or are there different dictionaries for different schools of thought?
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1answer
62 views
Does neoclassical economics explain or assume private property rights? [closed]
I understand that neoclassical economics is empirical, in contrast to the a priori base of Austrian economics. I therefore wonder if neoclassical economics also explains, rather than assumes, private ...
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34 views
Are there multilevel marketing companies that aren't pyramid schemes?
I've been doing lots of research on pyramid schemes, and the rebranding and institutionalization of the industry in the 1980s with trade groups, heavy investment in politics, etc.
The term "...
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2answers
1k views
What makes a company too big to fail?
I have read the too big to fail Wikipedia and as far as I understand, a company is too big to fail (and thus will receive government bail-outs) if it's failure has a significant impact on an important ...
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1answer
32 views
Do barriers to entry increase the (collective) market power of incumbent suppliers?
For example in the case of the labour market lower immigration means that low-skilled labour can ask higher wages or better conditions (other things equal). Low skilled labour may have even put the ...
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1answer
56 views
Difference between yield curve and term structure of interest rate
Can somebody please explain me the difference between yield curve and term structure of interest rate?
Thanks
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1answer
64 views
What type of an income distribution would allow the fastest growth and/or highest sustainability
Is there a theoretical framework to explore the question of what could be the ideal distribution of income among a population that yields growth and/or sustainability?
Let $P(m)$ be a density function ...
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2answers
67 views
What does annualised GDP shrinkage of 75% and growth of 54.6% mean?
According to Business Today (India), these are the latest figures for 2020 September 3 for GDP change in World's largest economies.
In simple terms, what do GDP shrinkage of 75% and growth of 54.6% ...
3
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3answers
136 views
Discounting terminology confusion
An example of the terminology that surrounds discounting that confuses me can be found in "Investment and Hysteresis" by Dixit:
Let future revenues be discounted at a positive rate $\rho &...
1
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1answer
110 views
Why may printing trillions of dollars not lead to inflation?
By definition, inflation should be affected by the increase of the money supply. During the pandemic, there have been numerous huge monetary policies executed, e.g., quantitative easing (QE), ...
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1answer
32 views
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1answer
120 views
Is marketing a field of economics?
I would argue that the marketing (or de-marketing as in the example of a recall) of goods and services is an implementation of knowledge and experience in microeconomics as it deals with the practical ...
2
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2answers
123 views
Need examples for confusion about rent-seeking. Who is the seeker and what is the rent?
Please answer assuming I have no background in economics. I keep coming across this term in various articles (Example) but get more confused every time I look up what it means.
I have read about the ...
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0answers
40 views
What is the proper academic term for “realizing sales from online traffic”?
Realizing sales form traffic is one of the major concerns for firms in a digital economy. To my knowledge, online marketing methods (such as SEO) usually generate traffic but not necessarily profits. ...
4
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2answers
117 views
Definiton of information sets in rational expecations models
I am struggling with the notion of 'information sets' in the context of rational expectation models in economics. I found interesting notes on the web (http://www2.econ.iastate.edu/tesfatsi/reintro....
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1answer
115 views
How is the defintion of the mean preserving spread (MPS) not too general?
The mean preserving spread is defined as follows:
Consider two lotteries g and h. Let $x_g$ und $x_h$ denote the corresponding random variables. Then h is a mean preserving spread (MPS) of g, if:
$...
3
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2answers
568 views
What is the definition of: 'commodity space'?
I have seen the concept of commodity space being used multiple times in economics, in particular within microeconomics, but I could not find a general definition of it.
Based on the examples that I ...
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1answer
51 views
Which single letter abbreviations are typically used for the production factors Land, Labour and Capital?
I often see "L" for Labour and "K" for Capital, as well as "M" for natural resources (i.e. Land) but they don't seem to be applied consistently.
2
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1answer
33 views
Understanding the arithmetic in this 1690 text
Nicholas Barbon (1690, A Discourse of Trade)
Another use of Interest, is, It is the measure of the Value of the Rent of Land; it sets the Price in Buying and Selling of Land: For, by adding three ...
2
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0answers
42 views
Meaning of “let him take Money at Interest, and not buy at Time”
Dudley North (1691):
let him take Money at Interest, and not buy at Time
What does the above statement mean? I think "take Money at Interest" simply means "borrow at some interest rate". But I ...
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1answer
21 views
Terminology: _______ financing (meaning financed through the private sector)
I have encountered several similar terms on this notion, including:
private sector financing (very clear, but a bit wordy)
market financing (somewhat clear, usage seems infrequent)
alternative ...
3
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1answer
72 views
Is there any academic source that uses the following 'standard broad' definitions of externality?
According to answer to this question by KennyLJ., there exists the following definition of externality:
The simple, standard, and broad definition I favor is this:
A decision's effects are called ...
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2answers
116 views
Is the use/consumption of natural resources considered an externality per se?
On a finite planet natural resources are rival goods by definition, i.e. if one agent uses/consumes a natural resource it becomes unavailable for other agents.
Mankiw defines an externality as "the ...
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0answers
27 views
Leader-follower-leader games
I am trying to find some literature on a variation of a Stackelberg game in which two players, P1 and P2, interact in the following order:
P1 plays
P2 plays
P1 plays
The best guess I have for the ...
4
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1answer
65 views
What does the adjective “structural” mean in “structural reforms” or “structural effects”?
Economists frequently speak of structural reforms and structural effects.
For example, Manmohan Singh (1992):
The economic crisis was used as an opportunity to implement basic structural reforms ...
2
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0answers
15 views
Is there a clear timeline of ECB/Eurosystem's changes to the defintion of M3 (with regard to repos)?
I found that circa 2012 the ECB/Eurosystem changed their definition of M3 to exclude at least some repos, which previously were included. According to a 2014 Bundesbank publication, the change ...
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2answers
82 views
Should unemployment caused by the government closing non-essential businesses during quarantine be counted as structrural unemployment?
I have following definition of structural unemployment (taken from "Modern principles of economics" by Tyler Cowen and Alex Tabarrok):
Long-term unemployment caused by shocks or permanent features ...
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2answers
129 views
Difference(s) between Rational Expectations Equilibrium and Nash equilibium
What is the major difference between the notion of rational expectations equilibrium and Nash equilibium? And why do we, only, have a rational expectation about the first moment (the price) in the ...
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1answer
266 views
What is a super deduction?
This is a term often encountered in documents published by the Big Four (Deloitte, Ernst & Young, Price Waterhouse Coopers, KPMG), for instance in the E&Y 2018 Worldwide R&D Incentives ...
5
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1answer
347 views
What were “scissors prices” (China, 1950s)?
Chan (2018) writes:
Implementing such a strategy, the state siphoned off resources in the rural sector for capital accumulation in industry through the well-known process of "scissors prices".
...
