Questions tagged [definition]

Questions about how economic terms, quantities, or ideas can be defined.

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2
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1answer
16 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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9 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 ...
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1answer
63 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
19 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-...
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2answers
90 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
94 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
37 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 ...
2
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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
55 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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31 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
955 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
31 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
27 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
2
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1answer
63 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
63 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% ...
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3answers
133 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 &...
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1answer
93 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), ...
1
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1answer
118 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
76 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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25 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. ...
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2answers
116 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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20 views

In economics what is “total of pre-tax income of all citizens” called?

What terminology is used in economics/finance to refer to the total of pre-tax income of all citizens of a country? And where to find that information
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1answer
77 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: $...
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2answers
399 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
49 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.
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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 ...
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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
20 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 ...
2
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1answer
68 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
114 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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26 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
64 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 ...
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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
79 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
103 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
76 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 ...
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1answer
267 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". ...
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90 views

Can structural unemployment be caused by regulations/laws of the government?

I think yes. Is my reasoning correct? The reasoning: Suppose, for an example, that prostitution was legal, but then the State changed its laws and criminalized prostitution. Has the State created ...
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2answers
57 views

Can resource be considered scarce if its supply is limited, while quantity of the resource is practically unlimited?

Let's consider energy of our Sun for an example. The Sun will be able to give us lots of energy for millions of years (and even its annual energy output is enormous), it's practically unlimited energy....
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1answer
19 views

What is the average percent of value an employee makes which he gets on salary (called)?

I'm looking for any statistics showing the average percent of money employees get from the monetary value they create, primarily from the US or EU. Is there a term for this ratio?
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2answers
34 views

Durable/non-durable good industries

How to define durable/non-durable good industries? For example, is the industry of Wholesale and retail trades defined as durable good industry? Thanks in advance.
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1answer
40 views

why is the term fiat money or fiat currency and is it the same as legal tender or are there any differences?

I learnt some very basic economics learning about 2, 2.5 decades back. Recently, while reading some article on the web, I came to know about 'fiat money' and 'fiat currency' but have been unable to ...
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1answer
46 views

Essential difference between Neo-Classical and Neo-Liberal economical philosophies

From what I learned about Neo-Classical and Neo-Liberal economical philosophies in different sources such as documentary series or Wiki site articles I understand both are "neo" versions of Classical ...
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1answer
25 views

What's the econ word for “Savings and efficiencies gained via consolidation”?

For example, say you had 5 kitchens making cookies in 5 parts of the city. But, then you bought 1 big kitchen, and moved all of your 5 kitchens to this 1 big location. Due to mass production, we ...
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21 views

How do you call systems in which the more you have, the more you make?

I am looking for a term for systems or dynamics in which the ability to earn a particular resource requires having a minimum of that resource available, and grows progressively or exponentially with ...
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3answers
2k views

What precisely is scarcity?

I'm aware that certain terms in economics have precise definitions that don't necessarily line up with our intuition about what they mean. I'm currently writing a paper that heavily relies on the ...
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3answers
478 views

What's the opposite of a Pareto improvement called?

Wikipedia defines a Pareto Improvement, "given a certain initial allocation of goods among a set of individuals" as: a change to a different allocation that makes at least one individual or ...
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1answer
34 views

What does 'currency convertibility' mean?

As a student with almost zero background in economics, I've been struggling to comprehend the notion of the currency convertibility. Most of the definitons I've found online talk about the ease with ...