Questions tagged [definition]
Questions about how economic terms, quantities, or ideas can be defined.
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What is “industrial capitalism”?
What's the difference between "industrial capitalism" and "agrarian capitalism" and "mercantilism" and the "industrial revolution" and the 20th century ideas of "Keynesianism"?
Is agrarian capitalism-...
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8 views
How to interpret the (expected) exposure and CVA of an option or a single share
I have a quick (hopefully simple) question regarding the interpretation of the expected exposure of a call option and a single share. I've done some computations on the formula for the expected ...
4
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3answers
60 views
Difference between shocks, innovations and disturbances
In macroeconomics and macroeconomic models, shocks, innovations, and disturbances are very prominent and often mentioned in the literature.
In general, is there a difference between macroeconomic ...
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0answers
17 views
What is meant by “resource base” in this sentence?
I read a sentence in a chapter in my book which was:
The emphasis on developing a resource base also meant that export-oriented growth was limited.
I googled the for the term "resource view". But ...
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1answer
208 views
What is the proper term for “contraction economics?”
By "contraction economics" I mean theories and work based on the assumption that the population of a country will decline over time.
An example might be a paper looking at the housing market for ...
6
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1answer
49 views
Meaning of $dF(z)$ in expected utility framework
Background: from a Microeconomics course,
$F$ is a cdf. In other words, if $F$ has a density function $f$, then
$$F(z)={\int_{-\infty}^z f(x) dx} $$
Write the Bernoulli utility function $u:...
2
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2answers
283 views
Are social goods and public goods the same thing?
I am confused as to they are the same or different?
3
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1answer
65 views
Why is it called Bayesian Persuasion?
I'm sure most of you are familiar with the paper titled "Bayesian Persuasion" by Kamenica and Gentzkow (2011), (you can find it here).
I was wondering what are your thoughts as to why it is called "...
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15 views
Is rent on a relocation — an example of unfunded liability?
I'm not too sure if the question makes much sense, but let's assume that you get a job offer in SF, and in order to accept, you basically have to sign a 6- or 12-month contract for rent in order to be ...
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0answers
14 views
Lifeboat vs bailout
I have encountered the term lifeboat in these two contexts:
Floating a “lifeboat”: The Banque de France and the crisis of 1889
The 1974 rescue in the UK's secondary-banking crisis.
Is the term ...
3
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2answers
75 views
Preference relations defined by $x_1^n + x_2^n$ converge to $\max\{x_1, x_2\}$
In the problem set 2 of Rubinsteins Microeconomics (btw is there a comparably nice written book on macroeconomics?) there is the following question:
Let $\succ_n$ be the preference relations defined ...
6
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1answer
866 views
Is there a general name for the setup in which payoffs are not known exactly but players try to influence each other's perception of the payoffs?
A recent question elsewhere made me look at the "madman strategy" which actually consists of trying to make the opposite player think that he is playing a game of chicken instead of prisoner's dilemma....
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129 views
What is the opposite of debt?
In trade, the opposite of trade deficit is trade surplus. In other words, the negative deficit is called surplus.
And then, what is the term for negative debt?
Say for example Bank A owes 5 million ...
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2answers
60 views
Is there a term for the personal wealth that is not used to generate income?
A rich person can own companies, shares, houses used for renting etc. that are worth billions of $US. That is the wealth that is generating income. I would call it income-generating wealth or income+...
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2answers
32 views
What's the term for the debt you have to pay today?
Say that a company has a debt of 10 million $US
But from that debt, the company has to pay 2 million $US today. The rest of the debt has to be payed next year and later.
Is there a term for the debt ...
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1answer
64 views
In the context of banking, how (if at all) do the terms 'capital', 'net worth', and 'equity' differ?
In banking, are the three terms capital, net worth, and equity simply identical and exact synonyms?
If not, how do they differ?
(Aside: And what about in other contexts? For example, does the same ...
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2answers
594 views
What would you call a real market that is close to perfect competition?
I want to explain perfect competition to students using a few practical examples without going into much of the theory. But I want it to be theoretically accurate and I don't want to claim that those ...
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0answers
23 views
What are the definitions of the terms value, wealth, and utility in economics?
Are there any definitions for the following three terms that are widely agreed upon in economics?
Value
Wealth
Utility
In particular, are these terms identical? If not, what differentiates them?
I ...
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31 views
What is the difference between personal consumption expenditure price and PCE quantity?
What is the difference between these two things? How is PCE price different from PCE quantity? Also, I am confused about the difference between PCE quantity and measure of real output. For example, ...
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22 views
Why is a call option called 'call', and put option called 'put'? [closed]
I'm asking about etymology, and not what these options are. The answers beneath don't feel convincing; can't 'call' and 'put' be interchanged in them? I'll abbreviate Call Option to CO, and Put Option ...
1
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2answers
51 views
Is there a super term for goods/products and services?
A business can sell "goods" (/"products") and "services".
Is there a term that encompasses both of these?
Various words may fit (e.g. "offering"), but I'm looking for the technical term, if there is ...
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1answer
22 views
What are 'Symmetric Agents' vs. 'Asymmetric Agents'?
Here is a contextual example from Landry et. al. 2006 :
We concentrate on an economy with n symmetric agents who
derive utility from consuming a numeraire good, yi, a public good
at level G, ...
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20 views
Synonyms for One-to-One Matching Mechanisms
I am trying to find a more elegant usage of wording for one-to-one matching and I am need of some thoughts from others. Bilateral matching? Any help would be respected.
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1answer
504 views
Is there any formal definition of a relationship between resource availability and demand?
I do not have any background on economics. So my question might sound too simple and I hope it to be clear enough. I am curious about the following:
Is there any formal definition of a relationship ...
3
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1answer
247 views
What is the definition of distributionally neutral tax?
On the website https://www.core-econ.org/ in the book provided, there is an exercise 19.10. It asks whether poll tax is progressive, regressive or distributionally neutral. To answer this question of ...
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1answer
431 views
What is the “entry price” in relation to tariffs?
I see the term “entry price” and “price entry system” in relation to tariffs.
What do these means?
For example this document: https://ageconsearch.umn.edu/bitstream/10095/1/sp06go22.pdf
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1answer
31 views
What is a digital platform?
In context of European research projects, they invest into development of digital platforms.
Here is a source to give a definition but not really, and every time people refer directly or indirectly ...
2
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2answers
61 views
Why was the term 'Economic Rent' chosen? How does it relate to the ordinary meaning of 'rent'?
Pindyck, Rubinfeld. Microeconomics (2017 9 ed). pp. 314-315.
Etymonline substantiates that 'rent' originally didn't mean the microeconomics meaning overhead: no surprise, as microeconomics is a ...
0
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1answer
61 views
Explain some All countries excluding residents in BIS Debt Securities Data
In the BIS Debt Securities statistics:
In both column "issueresidence" and column "issuenationality" there is a category called "All countries excluding residents". I do not understand what it means. ...
0
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1answer
51 views
When can a person be called rich?
What is the common definition for economic richness of a person?
When can you say John Doe (hypothetical name) is rich (objectively)?
Strictly economically speaking, no philosophical debate.
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2answers
376 views
What does Marx mean by “the division between capital and labor”?
I am reading an eight page piece called "Labor Alienation" by Karl Marx for my Literature class. Here's a link to it if you would like to read it:
http://www.yavanika.org/classes/reader/marx1.pdf
In ...
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2answers
1k views
what is the difference between microeconomics and microfinance?
what is the difference between microeconomics and microfinance?
I cannot understand the difference between the two terms
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1answer
55 views
Economics term for unfavorable goods
What are called goods, whose maintenance expenses are higher than initial price tag. There is a specific term for that, but I can't find it.
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2answers
53 views
What's the term for an economic policy that has negligible effect for most, but a significant effect for a few?
I remember this came up around tariffs in the US on aluminum. They have a negligible effect on the price of an aluminum can, but aggregated across all the aluminum cans sold, it can have a significant ...
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3answers
2k views
What is Opportunity Cost?
Suppose you have 2 activities, A and B. Doing activity A gives a return of 100 dollars, doing activity B gives a return of -50 dollars. What would be the opportunity cost of choosing activity B? 100 ...
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1answer
293 views
Intuition Behind the Definition of Prudence?
I'm having trouble seeing why an agent is said to exhibit "prudence" when u'''($\cdot$) > 0. How does having a utility function with a strictly positive third derivative make an agent act "prudently"? ...
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2answers
404 views
Why are simple returns additive over securities?
I've found a few sources for instance this one, that makes the claim that over a portfolio, simple returns are additive. I can see why it doesn't make a difference if we use net or gross returns as ...
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1answer
106 views
Definition of capitalism
Does the discipline of economics have an accepted rigorous definition of capitalism?
I.e. not something like "some economists would quote Hayek and say that so and so constitutes capitalism" but an ...
0
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1answer
42 views
Is there a term for the indirect sponsorship of large corporates by the state?
For example, unemployment welfare payments could be argued to be ameliorating the negative externalities of large corporates hiring newly arrived unskilled migrants.
Is there a term that covers this?
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3answers
407 views
Who created the concept of “present value”?
I cannot find anything on this online. The wikipedia article is purely technical, except by a mention that such system was used in England in early 16th century.
Do you know who was the first to come ...
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2answers
117 views
Is “management science” a subsection of economics?
Reading about the academic journal Management Science, one can read the following:
Management Science is a scholarly journal that publishes scientific research on the practice of management. (...) ...
3
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3answers
2k views
What is the term for 'forgone cost' as 'opportunity cost' is for 'forgone profit'?
For example, suppose I made \$100 from an investment. If I'd had deposit the same amount of money in the bank I would have get \$60 of interest. Then the 'forgone profit' or 'opportunity cost' in this ...
3
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3answers
119 views
Is the arable land a mean of production?
Wikipedia claims that "capitalism is an economic system and an ideology based on private ownership of the means of production and their operation for profit".
And then, the land used for agriculture ...
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1answer
71 views
What did Karl Marx mean by “the movement of this antithesis”?
In a lecture about ancient and modern cities, a quote came up on the slides from Karl Marx's Capital where he writes
"The foundation of every division of labor that is well developed, and brought ...
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1answer
216 views
Teaching changes in “demand” v. “quantity demanded”
I am always struggling with teaching this one.
The terminology of standard intro textbooks is unfortunate, although it's so pervasive that we probably have to live with it.
By a "Demand", intro ...
2
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1answer
36 views
Economic term for relation between drug and companion diagnositic
I'm looking for economic terminology which must exist, although I don't know what it is. (I want to look up articles on a particular situation involving two real-world companies.)
Here is the ...
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42 views
Terminology for separability in price and value
Take an agent with mean-variance utility over something that is uncertain:
$$
U(x) = \mu_x^\theta - \sigma_x^\lambda
$$
$A\in \{0,1\}$ happens if $U(x)>0$, and $x$ is a random variable
$$
A = \...
3
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2answers
1k views
Why is M0 higher than M1?
In my understanding, M2 includes M1 and M1 include M0. However, I checked the money supply here and used the "Compare" function to compare the money supply of m0 with money supply of m1, and found ...
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1answer
42 views
“Normal” vs “actual” variables in empirical work
In an early OECD study by Deppler and Ripley (1978), the authors distinguish between output per man hour, $OMH$, and what they call "Normal" output per man-hour, $NOMH$.
(table 2, p152)
At no point ...
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1answer
266 views
Definition: What Is The “Trend Growth Rate”?
I am a bit unsure about how the "trend growth rate" is defined in macroeconomics. Is it to correct to say that if a time series $\{y_t\}$ may be decomposed as $$y_t=d_t+c_t,$$ where $d_t$ is a ...
