Questions about how economic terms, quantities, or ideas can be defined.
Questions tagged [definition]
208 questions
6
votes
3 answers
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 output. And at each point, the output value is…
Arseniy
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6
votes
1 answer
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 no firm rule to help you decide which words are…
Martin Van der Linden
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5
votes
2 answers
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, etc.
I've understood the strict definition of "investment…
Deane
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3
votes
2 answers
Why was the term 'Economic Rent' chosen? How does it relate to the ordinary meaning of 'rent'?
Pindyck, Rubinfeld. Microeconomics (2017 9 ed). pp. 314-315.
Etymonline substantiates that 'rent' originally didn't mean the microeconomics meaning overhead: no surprise, as microeconomics is a recent discipline. So please see the titled…
user4020
2
votes
2 answers
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?
Further, if we have a multitude of distributions…
Adam
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2
votes
1 answer
Economic term for relation between drug and companion diagnositic
I'm looking for economic terminology which must exist, although I don't know what it is. (I want to look up articles on a particular situation involving two real-world companies.)
Here is the situation: Company A is developing a diagnostic test…
Drug investor
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2
votes
2 answers
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 here's the part I don't understand:
"When an economy…
leeand00
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1
vote
1 answer
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, randomized controlled trials).
Another two terms students get confused are:…
Frank Swanton
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1
vote
1 answer
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
- 438
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1
vote
2 answers
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 situation the quantity of some good produced and…
Nige
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1
vote
2 answers
Durable/non-durable good industries
How to define durable/non-durable good industries? For example, is the industry of Wholesale and retail trades defined as durable good industry? Thanks in advance.
Carl
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1
vote
0 answers
How do you call systems in which the more you have, the more you make?
I am looking for a term for systems or dynamics in which the ability to earn a particular resource requires having a minimum of that resource available, and grows progressively or exponentially with it. I want to do some research on “you need money…
agente_secreto
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1
vote
0 answers
Why is a call option called 'call', and put option called 'put'?
I'm asking about etymology, and not what these options are. The answers beneath don't feel convincing; can't 'call' and 'put' be interchanged in them? I'll abbreviate Call Option to CO, and Put Option to PO. From Quant SE:
Not as much on origin of…
user4020
1
vote
1 answer
What are 'Symmetric Agents' vs. 'Asymmetric Agents'?
Here is a contextual example from Landry et. al. 2006 :
We concentrate on an economy with n symmetric agents who
derive utility from consuming a numeraire good, yi, a public good
at level G, and (possibly) from their own contribution bi to the
…
orson
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1
vote
2 answers
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 positive 'internalities' (benefits that the consumer is…
user18