# Tag Info

11

Your formula $\mu = \sum\limits_{i=0}^n x_i$ just denotes the total amount of goods, so this just means that $\mu$ units were distributed among $n$ agents. Scarcity (in this context) means that no matter how you distribute these $\mu$ units, as long as everything else is unchanged (ceteris paribus) at least one agent would like to get more, i.e. $\forall (... 6 Unfortunately, definitions of many terms in economics are not universally agreed upon. The term externality is one such example. Indeed, it is notoriously difficult to write down any precise definition of externality that everyone will agree on (see quotes below). The simple, standard, and broad definition I favor is this: A decision's effects are ... 6 I usually use the phrase "Pareto worsening". It is not really widespread, in fact I am not sure I have ever heard anyone else use it. However now I googled it and people seem to use it in connection with Hart's 1975 paper wherein he shows that the opening of some new markets can make every agent worse off. Hart himself did not call this Pareto worsening, but ... 5 You are most likely looking for labor or wage share defined as the ratio of labor costs to nominal GDP. It basically expresses how much share of nominal GDP gets captured by labor. You can find the data for the labor share in the US here, under that bit of text (for some reason I could not find direct link to pure dataset). The data are from the US bureau ... 4 Yes, a commodity space is the set of all possible commodity bundles. The simplest Micro 101 example is typically the nonnegative quadrant of$\mathbb{R}^2$, but in general equilibrium theory it is often assumed to be infinite-dimensional since there are infinitely many commodities (each good is differentiated by time and space, etc.). 4 I suspect you have found the author responsible for the original coinage of the word "externality" within economics, with this meaning. In the 1950s (and earlier), the discussion of externalities was typically done using the phrase "external economies", as Francis M. Bator frequently did too. Bator built on Scitovsky (1954) and Meade (1952), both of whom ... 4 The strict logic opposite of course is simply any change where at least one person is worse off but not sure we need a name for that. The conceptual opposite to Pareto improvement can as you say be a change where no one is better off and at least one person is worse of. Existing Antonyms to "improvement" As for what to call it, the Thersaurus does indeed ... 3 Under Mao the Chinese government was a planned economy, prices were set by the party, not by the free market. Procurement prices of agricultural produce, what the government payed to farmers, were lower than consumer prices of the same produce, what the government got from selling the produce to the consumers. The difference in prices becomes state revenue. ... 2 Here's an example of why your question is difficult and depends on the framework. Case 1: Take the classical OLS case$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. 2 There are two key properties for a scarce good. First that demand can get arbitrarily high if the price is low enough. So if you plot demand on the$x$-axis and price on the$y$-axis this function is decreasing for all$x$. Second is that production cost is non zero, producing more items will always cost more money. This is always the case for physical goods ... 2 Difference between money and currency in general (i.e. in any monetary arrangement -fiat money, gold standard etc.) is as follows: Currency: is the money in the strictest sense of a word. It includes coins and bank notes in the circulation. In foreign exchange the word is also used to as a synonym for unit of money (e.g.$ €) but from your question I think ...

2

To expand on my comment. Your question is not really about economics but about philosophy or political science. The reason for this is that the Economics is usually defined following the definition of Lionel Robbins as: "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Neo-...

2

Use or consumption of natural resources is not in mainstream economics considered as an externality per se. First of all the quote from Mankiw is probably from undergraduate textbook and taken out of context as it is incomplete. For example according to Economics by Mankiw and Taylor (2014) 3rd ed the externality is defined as: the cost or benefit of ...

2

There are lots of different people unemployed, and the answer will be different depending on the person. In your prostitute example, if you left your medical assistant job because prostitution paid more, then it's frictional, because there are lots of medical assistant jobs, but it might take you time to go through the interview process and be onboarded. If ...

2

“Private sector” financing or “non-government” financing will certainly be most clear. “Market” financing is succinct but it can be confused with “capital market” financing, that is, borrowing by issuing tradable debt instruments. “Alternative” financing is generally used to refer to non-bank, non-capital-market financing, such as borrowing from private ...

1

It seems that the gentlemen is speaking in the english dialect of England. The Years purchase phrase is still used today. https://en.wiktionary.org/wiki/year%27s_purchase Years Purchase: The amount yielded by the annual income of property; used in expressing the value of a thing in the number of years required for its income to yield its purchase price, ...

1

A main textbook in environmental economics is Perman et al.'s Natural resource and environmental economics (currently in it's 4th edition, published in 2011). Their definition of an externality is: "An external effect, or externality, is said to occur when the production or consumption decisions of one agent have an impact on the utility or profit of ...

1

The issue is how we can decompose changes in unemployment into frictional, structural, cyclical, and seasonal. The question has been updated to include the source for the definition of “structural” unemployment. However, I do not have access to that text. There is nothing in the definition that allows us to calculate “structural unemployment” (nor the other ...

1

Deloitte managed a semi-intelligible explanation. It's called "super" when an income tax deduction is applied twice for the same item (e.g. for R&D)... In early 2015, Slovakia introduced a new type of tax incentive aimed at supporting companies conducting corporate R&D (most common is development of new or substantially improved products, services,...

1

If you are looking for term for the reason why the efficiencies occur it would be the increasing returns to scale.

1

Scarcity is a term which is often used in introductory textbooks and never properly defined. According to Walras, a good is scarce, if it is "useful to us [but] only available to us in limited quantity". That gives the idea, but is still somewhat vague. If you suggest a particular precise definition, typically many economists will disagree with it. Is air a ...

1

You seem to be correct. Or at least Medema (who is hopefully not you) agrees in a 2019 paper. It was Francis Bator’s elaboration of “The Simple Analytics of Welfare Maximization” in 1957 that introduced the term “externality” into the economics literature (1957, 42, 43). In contrast, Largreux (2010) says the term ‘externality’ – which, apparently, ...

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....

1

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 ...

Only top voted, non community-wiki answers of a minimum length are eligible