# Tag Info

7

I do not have a special term, but I give this analogy: We know what a triangle is. But in the real world, it is impossible to draw a perfect triangle and there do not exist examples of perfect triangles. Similarly, we have just learnt what perfect competition is. But in the real world, there do not exist examples of perfect competition. Nonetheless, ...

6

What players are trying to do is always up for interpretation, it is not coded into the mathematics of game theory. The madman strategy can be modelled as a Bayesian game, with different types having different payoffs, and one player sending a signal about their type, the other player observing the signal. A situation in which types are indistinguishable ...

6

Not all cdf’s have a density function, (for example if $F$ is not differentiable). However, when they do have a density, the notation $dF(z)$ is equivalent to $f(z)dz$. When performing integrals. However, even if the density does not exists, you can still write the expectation using the notation $dF(z)$. The details of what it actually means and the subtle ...

5

In a standard cheap-talk setting, a sender (S) has better information on a state of the world and wants to communicate this information to a receiver (R) who then takes an action. However, S and R prefer different actions conditional on the state. Importantly, S is free to send any message independent of what she knows. That is, she cannot commit to a signal ...

5

I guess it might depend on the author. Here's another classification: The classifications of public goods associated to agriculture identify two main categories: environmental goods and non-environmental goods (or social goods). In the first category are placed those public goods closely related to environmental externalities, such as farmland ...

3

The Rawlsian welfare function, which takes the form of the min of all agent's utility, is often called the maximin function, because it maximizes minimum utility. In the spirit of that nomenclature, your function is a maximax utility function. And, apparently, this function does see some use. It is sometimes called the optimistic decision criteria, because a ...

3

“Symmetric agents” generally means that all the agents have the same payoff function and the same information set. In this case, it’s the function you’ve specified. It’s often the case that, because symmetric agents will all respond the same way, they can be replaced with a single representative agent, in contrast to heterogenous agent models.

3

I don't think there is a standard term for what you'd want to refer to. I'd consider the following good candidates though: Near-perfect / almost-perfect / close-to-perfect / epsilon-perfect competition (the last of course comes from the notion of epsilon-equilibrium in game theory) Markets with low concentration, or lowly / sparsely concentrated markets (...

2

The trouble with economics is that many of its technical terms either have broader or narrower meaning in ordinary language. "Good" is one such example. A good is any thing that can be used to satisfy a human want, provided that the person who wants to use this good can (i) control it, and (ii) believes that she can use it to satisfy her wants. This is a ...

2

I'm not aware of any such "technical" term in economics. Goods and services are referred to as goods and services in economics, period. From the example you give in the comments, it looks like you're trying to write an introduction/review of a business. In that case, not using a technical jargon, be it existing or not, would probably be better anyways. By ...

2

I do not believe that your suggested definitions will hold up. Since this is a forum for questions about economics, I do not see the point of proposing a new definition here. Who is going to see it? What you call “income generating wealth” is captured by “wealth” in its standard usages. However, what you exclude (such as bank deposits) will be included in “...

2

Debt due today is an example of a current liability, although that term also includes liabilities due within one year, and is contrasted with long-term liabilities which are those due in more than one year.

2

Are you thinking of "due debt"?

2

Here's an example of why your question is difficult and depends on the framework. Case 1: Take the classical OLS case $Y = \beta X + \epsilon$. In this case, the $\epsilon$ can thought of as an error term which represents noise around the response. So, the mean of the response is $\beta X$ but on any particular response is not going to be exactly equal to ...

2

In Greene "Econometric Analysis" the disturbance of linear regression, $$\epsilon_t = y_t - \mathbf{x_t}\boldsymbol{\beta}$$ is estimated with the residual, $$e_t = y_t - \mathbf{x_t b}$$ In the text, disturbances $\epsilon_t$ are also called innovations. Qualitative events in an economy that impact a process or model's variables or error term are shocks.

1

There's a lot going on in this question, so I'll focus on the labor-economics part of the question rather than the political-economy part of the question. If it is the case that these migrant workers are being paid considerably better than their alternative labor options, but they are at the same time being deprived of rights they might value (access to ...

1

I don't think there is really a consensus and the definition depend on the field and context. Within applied macroeconomics, I prefer the definitions used by Blanchard and Watson (1986) and Bernanke (1986) and others. Valerie Ramey gives a good discussion of the definition in "Macroeconomic shocks and their propagation" in the Handbook of macroeconomics, vol....

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It doesn't look like there's an established term. Combine "demographic decline", "population decline" or even "fertility decline" (although this doesn't imply population decline) with whatever you are interested in (markets, economic growth etc.) These papers (if macro) usually get JEL-tagged "J11 Demographic Trends, Macroeconomic Effects, and Forecasts" in ...

1

From Wikipedia: Social goods are defined as public goods that could be delivered as private goods, but are usually delivered by the government for various reasons, including social policy, and funded via public funds like taxes. https://en.wikipedia.org/wiki/Public_good#Social_goods The Wikipedia article also has a qualifier: defined by whom?

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I am assuming you're familiar with the concept of monotonic transformations. Let $f(z)=z^n$ be a monotonic transformation. $f(z)$ is an order preserving transformation for all positive $n$. Let $v:\mathbb{R_+^2} \to\mathbb{R}$ be an utility function, where $v(x_1,x_2)=(x_1^n + x_2^n)^{1/n}$. The function \$f(v(x_1,x_2))=((x_1^n + x_2^n)^{1/n})^n=x_1^n + x_2^...

1

The distinction between the two is not well specified. If I own an apartment I can rent it out or I can live in it. If I own an art collection I can hang it in my house or charge others to see it. Cash in bank accounts is lent out by banks to form investments in other firms and projects. Land might be used for long walks or used for farming, natural resource ...

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Utility Trade-offs: Pareto Efficiency vs Equality While I tend to agree with the notion of Tragedy of the Commons as per the comments, I will provide an additional economic framework to answer your question. Perhaps this is something you already know, but is nonetheless useful for answering your question as per the welfare-economics tag. As to the exact ...

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The dictionary definitions of capitalism (currently the most upvoted answer) have been critiqued as inadequate, in the sense that they are too broad, by Geoffrey Hodgson in his treatise, Conceptualising Capitalism (University of Chicago Press, 2015). Definitions proliferate. Most dictionaries stress private ownership and markets; many add the profit ...

1

Though there may not be a set definition of "capitalism" chisled in stone somewhere, there are general principles that economists agree are implied in capitalism and that capitalism implies. Take, for example, the two below definitions of "capitalism": [A]n economic system characterized by private or corporate ownership of capital goods, by ...

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