Questions tagged [definition]
Questions about how economic terms, quantities, or ideas can be defined.
135
questions
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 ...
0
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0answers
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 ...
-1
votes
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 ...
0
votes
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
votes
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-...
4
votes
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
votes
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 ...
1
vote
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
votes
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 ...
0
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0answers
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 "...
10
votes
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 ...
-1
votes
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 ...
1
vote
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
votes
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 ...
1
vote
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% ...
3
votes
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 &...
1
vote
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), ...
0
votes
1answer
31 views
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
votes
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 ...
0
votes
0answers
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. ...
4
votes
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....
0
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0answers
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
0
votes
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:
$...
3
votes
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 ...
0
votes
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.
2
votes
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
votes
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 ...
1
vote
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
votes
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 ...
0
votes
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 ...
0
votes
0answers
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
votes
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 ...
2
votes
0answers
14 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 ...
1
vote
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 ...
1
vote
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 ...
1
vote
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 ...
5
votes
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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votes
2answers
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 ...
0
votes
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....
0
votes
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?
1
vote
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.
2
votes
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 ...
0
votes
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 ...
0
votes
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 ...
1
vote
0answers
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 ...
4
votes
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 ...
5
votes
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 ...
0
votes
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 ...
