Skip to main content

Questions tagged [definition]

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

Filter by
Sorted by
Tagged with
0 votes
4 answers
140 views

Defining endogenous vs exogenous, in layman's terms?

I'm curious to hear an explanation of the difference between an endogenous and an exogenous process, preferably with specific examples? My background is a BS in math which included just one econ ...
Hank's user avatar
  • 1
3 votes
2 answers
414 views

Definition of socialism

Does the discipline of economics have an accepted rigorous definition of socialism? I.e. not something like "some economists would quote Hayek and say that so and so constitutes socialism" ...
Giskard's user avatar
  • 29.2k
16 votes
4 answers
7k views

What is "trickle-down economics"?

The term trickle-down economics often come up in debates, even on this very site there are questions about situations where it did or did not work, but what does that term actually mean? I tried to ...
vsz's user avatar
  • 365
1 vote
1 answer
63 views

Convex to origin - precise definition

This question asks about what "convex to origin" means. IMO even though there are half a dozen answers, they are all unsatisfactory. So in this question I ask for a precise definition of &...
Giskard's user avatar
  • 29.2k
4 votes
2 answers
166 views

Definition of economics

What is the accepted definition of economics? I've read basically two versions, one that defines it as the study of scarcity and the other as the study of how to coordinate human desires given ...
KEll's user avatar
  • 51
0 votes
1 answer
38 views

Purchase price equals present value of future price

Suppose we need to decide if to acquire A now for \$95.24 or in one year for $100. If the opportunity cost is 5% annual, what option would you choose? My possible solution: as the present value of \$...
monalisa's user avatar
2 votes
2 answers
100 views

What is the name of the principle "GDP=Production=Income=Expenditure"?

Wikipedia says GDP can be determined in three ways, all of which should, theoretically, give the same result. They are the production (or output or value added) approach, the income approach, and the ...
user46190's user avatar
1 vote
1 answer
37 views

Tastes: instantaneous or overall utility function

What are tastes referring to? I have always considered them to be the instantaneous part of dynamic utility function: $$U = u_1(x_1) + u_2(x_2) + \dots u_t(x_t)$$ Where $u_s$ denotes tastes in the ...
Athaeneus's user avatar
  • 822
0 votes
2 answers
48 views

Meaning of "determines"

In macroeconomics I come across lot of sentences like In the short run, demand determines output. In the short run, the central bank determines the interest rate. In the short run, output is ...
quanity's user avatar
  • 137
2 votes
0 answers
313 views

Definition of semi-elasticity

The "$x$-elasticity of $y$" is defined as $\epsilon = \dfrac{\partial y/y}{\partial x/x}$. The $x$ goes down, and the $y$ goes up. But we have two definitions of semi-elasticity: $\epsilon_1 ...
robertspierre's user avatar
1 vote
1 answer
172 views

Correct Usage of Ex-ante & Ex-post

Trying to provide precise but intuitive explanations on how the terms "ex-ante" and "ex-post" are used in economics and in the context of econometrics (e.g., impact study, ...
Frank Swanton's user avatar
3 votes
1 answer
153 views

Continuity of preference

"A preference is continuous if for any $a,b\in X$ with $a\succsim b$ there are some neighborhoods $N_{\varepsilon}(a)$, $N_{\delta}(b)$ around $a$ and $b$ such that for every $x \in N_{\...
Huy Lê Thanh's user avatar
1 vote
1 answer
102 views

Is there an accepted definition of what a “shortage” is in economics?

Laymen often talk about “shortages” in the economy. But is there an accepted definition of what a “shortage” is from the perspective of economics as a science?
JonathanReez's user avatar
0 votes
2 answers
830 views

What is the difference between utility, payoff and expected utility, or are the terms interchangeable?

I've started teaching myself game theory recently, but so far I haven't come across anything clarifying these terms . This is my understanding of the terms based on what I know: Payoff = Utility. ...
Mari's user avatar
  • 1
0 votes
0 answers
12 views

Term describing behavior of high-margin, capitol-intensive companies in an industry with declining available resources

I am searching for the term that is used to describe the behavior for firms and companies that are often high-margin and capitol-intensive, existing within an industry where the principle resource is ...
user44517's user avatar
6 votes
3 answers
2k views

Are logarithmic values ​used in finance?

In engineering (in particular, in fiber optics), the logarithmic form of representing numbers is often used. It is convenient if the value sequentially passes through a series of points with input and ...
Arseniy's user avatar
  • 163
0 votes
0 answers
9 views

Is there a term for an international market in which firms cannot break even without subsidisation?

There are (and have historically been) various sectors whose firms frequently receive subsidies from their home government, for instance because they are perceived as "strategic". Is there ...
Dan's user avatar
  • 1,356
0 votes
1 answer
39 views

Is there a name for relative diminishing returns, or relative increasing opportunity cost?

Consider the following hypothetical situation: You are producing something where the total amount produced, $A$, is equal to the product of two factors, $X$ and $Y$. Hence $A=X*Y$. $X$ and $Y$ both ...
Sepehr Nazari's user avatar
0 votes
0 answers
26 views

"Mechanism design" vs "Implementation theory"

The terms mechanism design and implementation theory seem to me closely related: in both fields, we are given some objective function, and we want to "implement" it, that is, construct a &...
Erel Segal-Halevi's user avatar
0 votes
1 answer
34 views

'Accuracy' of a Signal

I am trying to understand a line in the paper titled "Reference Dependent Consumption Plans" written by Matthew Rabin and Botond Koszegi, and published in the American Economic Review, Vol ...
Ramandeep's user avatar
0 votes
1 answer
31 views

Are there terms to separate two different notions of percentage increase?

Say someone owns 30% of the shares of a company. Then suppose that they increase their number of shares by 50%. This last sentence is ambiguous. It could mean that they increase their number of ...
Eoin's user avatar
  • 103
0 votes
0 answers
55 views

How to create a composite good?

Let's say I would like to create some composite score for multiple of goods... EDIT: More concise version based on @BrsG comments... I would come up with the following scenario. I have a consumer with ...
Athaeneus's user avatar
  • 822
1 vote
0 answers
53 views

What does this notation mean?

I am following an IO paper and, at some point, a function $h(\cdot)\in \mathbb{R}^2_+$ is defined as $$h(t) = \cases{\mathbb{1}(t=k)*|\mathbb{N}(0,1)|\\\mathbb{1}(t<k)*|\mathbb{N}(0,1)|}$$ where $k\...
marcvaliente's user avatar
0 votes
1 answer
74 views

Looking for a term I'm pretty sure exists

Let me describe the situation: Company is selling a product; they buy it at x, sell it at some % over for profit. Taken on a monthly scale, you can see the profit of that particular object by ...
JustSomeGuy's user avatar
0 votes
2 answers
160 views

Is elasticity of substitution defined for non-homogeneous production functions?

The elasticity of substitution between two inputs $x_1$ and $x_2$ is typically given as $$\frac{d \ln \left( \frac{x_2}{x_1} \right)}{d \ln(\mathrm{MRTS}_{21})}.$$ As these notes show, if the ...
tparker's user avatar
  • 770
1 vote
0 answers
15 views

Why is the internal rate of return decreasing while the profit per unit of real gross value added is increasing?

I made a graph based on data from the Penn World Table showing that the internal rate of return has been decreasing over time in the US and the rest of the G7 (even more if you exclude Germany, whose ...
dolcem's user avatar
  • 11
1 vote
2 answers
100 views

Difference between „equal variables“

Consider for example a production function with one variable. Let’s say the function is f:R->R y=I, where y is the quantity produced and I is the quantity of some input used for production. In this ...
Nige's user avatar
  • 11
0 votes
1 answer
174 views

Definition of quantities

Is a quantity a number or does it consist of a number and a unit? To give an example: Sometimes I read something like „the quantity of good A the consumer consumes is 10“ and sometimes I read ...
Nige's user avatar
  • 11
1 vote
1 answer
693 views

What does THO, as in "USD THO", stand for in export statistics?

I've noticed that some online sources use "USD THO" as a unit to express rates of transfer of value. Specifically, I saw it in measuring Chinese exports to Russia in this video at 21:20 ...
Mr. Nichan's user avatar
5 votes
2 answers
103 views

What is the general definition of an "investment bank"?

I'm reading "Too Big To Fail" about the 2007 financial crisis, and there's a lot of discussion about the big investment banks: JP Morgan Chase, Goldman Sachs, Bear Stearns, Lehman Brothers, ...
Deane's user avatar
  • 447
0 votes
0 answers
75 views

strict monotonicity definition in Reny textbook and strong monotonicity

Reny-advanced microeconomic theory-page 10 wiki-monotonicity preference This capture is the definition of strict monotonicity in Reny's textbook, and I've compare it with wikipedia also other ...
LJNG's user avatar
  • 143
5 votes
3 answers
817 views

In US, was there an instance in the history when two consecutive quarters of GDP decline wasn't classified as recession?

This topic has been a bit politicized. The common perception that two consecutive quarters of negative GDP growth counts as a recession is a myth. There is actually a committee that determines whether ...
Matt Frank's user avatar
1 vote
0 answers
25 views

Survey of Consumer Finances - What counts as a family?

I am looking at the Federal Reserves survey of consumer finances. I am wondering what counts as a family? For example, would a single person living alone count as a family? What about an adult son ...
Bob's user avatar
  • 123
1 vote
0 answers
61 views

Does envy and identity fall under "social preferences"?

Social preferences refer to concepts such as reciprocatory, altruism, fairness and inequity aversion, as outlined in Fehr & Fischbacher (2002) and here. Does greed or envy fall under "social ...
Eli J's user avatar
  • 409
2 votes
1 answer
105 views

Can the ideas of capitalism and communism be well defined?

I have read several reddit threads where it is said that modern economists don't bother with ideas like capitalsm and communism (eg: 1 ,2). However when one looks in a dictionary they get the ...
Babu's user avatar
  • 449
1 vote
1 answer
55 views

What is the economic nature of water?

How should one classify water in economic terms? Is it a commodity, a natural resource, can it be both? Does it depend on how it is being used (e.g., as input/raw material in some process)? I was ...
flen's user avatar
  • 113
0 votes
1 answer
77 views

Distinguishing Between Different Terms in Economics

I have no background and Economics and am trying to teach myself about some basic things in Economics. For example, I am trying to understand the following terms: Nash Equilibrium Optimal Strategy ...
stats_noob's user avatar
0 votes
0 answers
24 views

Meaning of “accumulation through mar­ket exchanges”?

I'm unsure as to whether this question belongs on the History or Economics stack exchange, but while reading a book on Soviet Union policies after WW1 I came across the term “accumulation through mar­...
Pen and Paper's user avatar
1 vote
0 answers
36 views

Approximating Optimal Choices and Income Inequality

It seems that at least the basic microeconomic theory assumes we are optimizing over quantities that can take continuous magnitudes, but in practice one can often only purchase goods in discrete ...
Jacob Denson's user avatar
0 votes
1 answer
42 views

Preference terminologies

I am reading one paper by [Maskin et al. 1979] and cannot figure out some notations. Specially, they defined some states of nature $A$, and each player in the player set $I$ has some preferences over ...
Francis's user avatar
  • 65
1 vote
0 answers
88 views

Differences between stocks and bonds

I just learned what bonds are. They seem similar to stocks, but different in key ways. I'd like to know all the ways. I'll list the differences that I currently believe they have. The only reason I'm ...
user110391's user avatar
1 vote
1 answer
70 views

Is it possible to get a demand function as function of income and utility from this log linear indirect utility?

I have this indirect utility function: $$v=-c\frac{p^{(-β+1)}}{(-\beta+1)}+\frac{y^{(-\gamma+1)}}{(-\gamma+1)}$$ with constraint Y = c + pq I have posted before about getting the utility function from ...
Victor Nielsen's user avatar
1 vote
0 answers
78 views

What is the typical utility function of the standard loglinear demand function?

What is the typical utility function of this demand function? $$x_1 = \ln(x_2) - \beta \ln(p_1) + \gamma \ln(y).$$ With budget constraint $y = p x_1 + x_2.$
Victor Nielsen's user avatar
0 votes
3 answers
338 views

What are the examples to the terminology "allocation of scarce resource"

Does allocation of scarce resource mean trading of a perishable goods with the one who needs it most. Say, a drug that can cure cancer and there is only 10 units left. A seller sells the item who pays ...
Charles's user avatar
  • 21
2 votes
1 answer
571 views

Demand vs. demand schedule vs. quantity demanded

What is the difference between the concepts of demand, demand schedule and quantity demanded? Can these be used interchangeably, and do any of them have multiple meanings in economics? Also, is there ...
Giskard's user avatar
  • 29.2k
-2 votes
1 answer
40 views

What does it mean by the statement "a corporation looses money if it produces more than its value"

Recently I was reading a book on corporate finance titled "corporate finance for dummies". Here in the introduction page the author has given a definition for corporate finance, followed by ...
Charles's user avatar
  • 21
0 votes
1 answer
57 views

Is there a term to refer to the point at which an actor updates a "price"?

Examples of what I mean: A company increases the price of their product to match increasing COGS (e.g. a restaurant increasing their prices because the cost of ingredients has increased significantly)...
Deco's user avatar
  • 101
0 votes
1 answer
94 views

Why we say "active investing puzzle" while we already know the reason?

Han,2021 describe active investing puzzle as: Notably, individual investors trade actively and have invested in active investment funds for decades, and they thereby have on average underperformed ...
Phil Nguyen's user avatar
  • 1,150
3 votes
1 answer
228 views

What does "mass" mean in a Macroeconomic model?

A Solow model problem I am trying to solve asks me to assume that the economy consists of identical agents of mass 1. I have never heard of this term before, what does this mean?
Shaikh Ammar's user avatar
1 vote
1 answer
37 views

Characterizing goods by R&D costs

Is there a name for distinguishing manufactured goods requiring little/no R&D and ones requiring high/sustained R&D costs? Do these two types of manufactured goods have a name in economics? ...
user avatar

1
2 3 4 5