Questions tagged [definition]

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

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22 views

$I(g)$-terminology

During my studies I came across the $I(g)$-symbol, in the sense that $Z_t \sim I(g)$ for an integer $g$ and $Z_t$ is a times series. What exactly does this mean, and does it have to do with ...
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210 views

What are some alternative words for “cartel”?

I am looking for some words for "cartel" in economics. I did a search and found a good word is "corporate consolidation" from this newspaper. I am wondering if there is any other ...
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2answers
160 views

Can we rank stochastic dominance of distribution functions that belong to the same class?

The actual distributions I am dealing with are not uniform, but to keep it simple, consider two uniform distributions, one on [1, 2] and the other on [0,2]. Can we say that the first FOSDs the second? ...
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1answer
52 views

Precision of language regarding “statistical significance” in Wooldridge's *Introductory Econometrics* (7th ed)

I've been reading Jeffrey Wooldridge's textbook Introductory Econometrics: A Modern Approach (7th edition) in preparation for a class I will be teaching. I've appreciated the precise language he uses, ...
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2answers
116 views

What's the difference between Ex-post Incentive Compatibility and Dominant-Strategy Incentive Compatibility

According to the Wikipedia definition of Dominant-Strategy Incentive Compatibility (DSIC): DSIC means truth-telling is a weakly-dominant strategy, i.e. you fare best or at least not worse by being ...
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1answer
25 views

What type of dividends are there [closed]

Then came Meredith Whitney, with news. Whitney was an obscure analyst of financial firms for an obscure financial firm, Oppenheimer and Co., who, on October 31,2007, ceased to be obscure. On that day ...
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34 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
88 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" **...
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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 ...
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1answer
218 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) ...
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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 ...
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1answer
35 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 ...
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1answer
46 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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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--...
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2answers
206 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
36 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 '...
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0answers
54 views

Joint significance test in a difference-in-differences setting

I ran the following difference-in-differences 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
210 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.
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1answer
212 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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23 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
66 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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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 ...
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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-...
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2answers
150 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 ...
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1answer
147 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
49 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 ...
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1answer
33 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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65 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
33 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
76 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
68 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
137 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
112 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
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 ...
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2answers
146 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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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. ...
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2answers
121 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
117 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
619 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.
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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
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
73 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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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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28 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 ...