Questions tagged [definition]

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

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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 = \...
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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
44 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
360 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 ...
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1answer
210 views

What is the correct economic term for beneficial “transaction frequency”?

I am not an economist but I am trying to track down and understand an economic principal (and/or theory) that I think is called "transaction frequency" but when I go searching on that term I find only ...
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2answers
5k views

Is cash(currency) a security and a debt instrument?

I know that cash is a financial asset and securities are defined as tradable financial assets, so cash is a security, right? Another thing I'm wondering is that whether cash/banknote is a debt ...
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1answer
377 views

Understanding at a quote about externalities in law and economics

that something is an externality is partly a statement about physical reality and partly a statement about the legal system. What does this mean? I assume the aspect of externality being a physical ...
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2answers
87 views

Is a country in economic downturn if its growth rate is negative, but improving?

As I understand it, economic downturn means that economic growth is significantly slowing down or entering into recession. (If anyone wants to correct me, please do so). i.e. Growth rate is decreasing....
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1answer
344 views

Is there a specific definition of short run and long run?

Like normally how long can be said as long run? And does specific time length of these words matters?
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33 views

Formal terminology for positive and negative correlation between ability of workers for different jobs?

Say there are two occupations - A and B, and plenty of workers. Let's pick occupation A, and order workers from lowest to highest ability/productivity. Which is the formal term to describe the ...
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1answer
118 views

A guide to hyphenation in economics?

In the econ literature, what is the convention when it comes to (not) hypenating some common terms like: first(-?)best, second(-?)best,... best(-?)response? ... The Economist suggests that "There is ...
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1answer
4k views

What is the “gross national saving” for?

I don't understand what the term Gross National Saving is for. According to the world factbook, it represents the following: Gross national saving is derived by ...
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177 views

What is Natural Capital?

"European movements for degrowth, decroissance, are rooted in the idea that the perpetual growth assumption built into modern economics fails to take into account the depletion of natural capital. ...
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4answers
167 views

How to calculate the average wage increase?

What is the average wage increase and how does one calculate it? Gottfries (2013, p. 166) refers to the following formula as the "average wage increase:" $$\frac{\Delta W_t}{W_{t-1}}$$ If the above ...
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2answers
2k views

What is the difference between gross, operating, net profit and EBIT(DA)?

What is the difference between the following accounting measures, if any? Gross profit Operating profit Net profit/income EBIT EBITDA
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416 views

What is an econometrician?

According to Wikipedia, Econometrics is the application of mathematics, statistical methods, and computer science to economic data and is described as the branch of economics that aims to give ...
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1answer
454 views

What does efficient and inefficient innovators mean?

I have been reading through this article about Innovation Indexes. In this, I have come across the terms: "Efficient Innovators" and "Inefficient Innovators" in this plot: So, what do they mean? ...
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1k views

Can You Help Me Understand this Definition of Economic Efficiency

Economic Efficiency: "A broad term that implies an economic state in which every resource is optimally allocated to serve each person in the best way while minimizing waste and inefficiency. " And ...
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1answer
47 views

Confused by the Term “Welfare Relative to Full Information Welfare”

This is a question comes from Field Exam in Advanced Economics Theory (Jan 2016) from UCB Econ Dept. In the first problem (Q1), it asks: b) How does welfare relative to the full information welfare ...
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1answer
85 views

What's the difference (if any) between “fixed assets” and “fixed capital” in the UN SNA?

From my reading of the UN System of National Accounts (2008 update), "fixed assets" and "fixed capital" seem to be completely synonymous. Yet strangely there seem to be these two different terms. So ...
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1answer
63 views

Terminology for “part” of extensive form game

How should I call a "part" of an extensive form game which is neither (i) a subgame, nor (ii) a stage in a repeated game? For instance, consider the class of games constructed by "stacking" 2 ...
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1answer
576 views

Great “constants” of economics

Question What are the great "constants" of economics? Background In his Structural Slumps (Chapter 3, p.20), Phelps refers to the great "constants" of economics. He explains that the natural ...
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1answer
85 views

Best terminology for “inverse” preferences

This might be related to : Symmetric and asymmetric preferences. In your experience, what is the best terminology to denote a pair of preference relations $(R,R')$ over some set of alternatives $A$ ...
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2answers
775 views

What is a merit good?

I just came across the concepts of merit and demerit goods for the first time, in the Cambridge A-level economics syllabus. I wasn't sure what they were. Is a merit good simply a good that has ...
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2answers
166 views

Definition: Extractive Goods (Comtrades HS-Categorization)

I'm currently writing a paper on China in Africa and I'd like to compare Africas Exports to China with its exports to Europe and the USA. More specifically I'd like to find out if the Exports to China ...
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1answer
5k views

Economies of Scale vs Learning Curve

Is there a difference between the meanings of the terms "economies of scale" and "learning curve"? The term "learning curve" is being used by cost estimators and refers (more or less) to the idea ...
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0answers
49 views

Terminology and formalization for “anonymous” game forms

I have an intuitive notion of what an "anonymous" (extensive) game form $\Gamma$ is. In my mind an "anonymous" game is a game in which the players' identity does not matter. This includes the (again ...
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1answer
440 views

A term for utility functions based on the max operator

What is a standard term for utility functions of the type: $$ u(x_1,\dots,x_m) = \max(\frac{x_1}{w_1},\dots,\frac{x_m}{w_m}) $$ where $x_i$ is the amount of commodity type $i$, and $w_i$ is a ...
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1answer
6k views

“Competitive equilibrium” vs. “General equilibrium”

What is the difference between the term "competitive equilibrium" and the term "general equilibrium"? Here in econ.SE, they are two different tags, so there is probably a difference between them, but ...
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2answers
63 views

What's the term for consumers not being able to pay their mortgage?

Is there a term for not being able to pay your mortgage(s)? Like "personal bankruptcy", "consumer default" or something like that?
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3answers
143 views

What is the difference between a Start-Up and a small company which is not a Start-Up?

What exactly makes a small and youg company a "Start-Up", among other small and young companies which are not necessarly start-ups?
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1answer
197 views

What term/theory describes more efficient utilization of a resource?

I may be asking the wrong question here, but I wonder if there is a term/theory that describes/studies the evolution of an economy that continually improves the utilization and allocation of certain ...
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3answers
6k views

Is 'full employment' synonymous with 'the natural rate of unemployment'?

Is the phrase 'full employment' synonymous with the phrase 'the natural rate of unemployment'? Parkin, et al. (2010) seem to use these two terms interchangably in chapter 20, but looking up these two ...
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3answers
208 views

What does 'intelligent money' mean?

Is 'intelligent money' or 'smart money' an economic term, and if yes, what does it refer to?
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1k views

Suitable terminology for the inverse elasticity?

In many microeconomic applications (e.g. monopoly price-setting) the inverse elasticity appears. Explaining such relations to laymen is often awkward because inverse proportionality is not as ...
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3answers
1k views

competitive equilibrium, Walrasian equilibrium, Walrasian auction

There are several sellers holding some indivisible goods, and several potential buyers with different valuations for these goods. I need to calculate the Walrasian equilibrium in this scenario, but ...
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1answer
82 views

Is there a name for this family of games (Binomial games?)?

I'm wondering if there's a name for a $n$-player symmetric game, such that the payoff for player $i$ playing strategy $j$ only depends on the number of other players which played $j$. Such family of ...
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2answers
363 views

Problem with defining liquidity

I have heard multiple times that a consistent definition of liquidity does not exist. The two wikipedia articles describing liquidity (Market liquidity and accounting liquidity) lack a discussion of ...

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