An exploration of the accelerator model, a framework that explains the relationship between investment and changes in output, along with its historical context, key principles, and real-world applications.
A diagram showing for each level of national income the total level of aggregate demand in an economy that would result from it. Internal balance in the economy requires that aggregate demand be equal to national income.
A comprehensive exploration of the Arrow–Debreu Economy model, detailing its development, key principles, significance, and applications in economic theory and finance.
Calibration is the process of identifying numerical values for parameters in an economic model by combining empirical data, informed judgement, simulation, and fine-tuning to match model predictions with empirical observations. This procedure is crucial in assessing business cycle models.
A comprehensive guide to understanding Calvo Contracts, their role in New Keynesian economics, the underlying model, key concepts, historical context, and applications.
An in-depth examination of Capital Distribution, including its historical context, categories, key events, detailed explanations, mathematical models, applicability, examples, related terms, comparisons, facts, quotes, FAQs, and more.
A detailed exploration of the Capital Stock Adjustment theory of investment, its historical context, key events, detailed explanations, mathematical models, importance, applicability, and more.
Comparative Statics involves the analysis of how equilibrium positions in economic models change with variations in exogenous parameters, helping economists understand the effects of policy changes, shifts in preferences, and external shocks.
A comprehensive look at Computable General Equilibrium Models, which are used to analyze the economy-wide effects of policy changes by solving all equations analytically or numerically.
Explore the concept of Conjectural Variation in oligopoly models, detailing its historical context, types, key events, mathematical formulations, and applicability in modern economics.
A comprehensive exploration of Cournot Competition, an imperfect competition model where firms decide output quantities simultaneously. Includes historical context, types, key events, mathematical models, and more.
An in-depth exploration of the concept of demand, including its historical context, types, key events, mathematical models, importance, and real-world examples.
An in-depth exploration of demand-deficiency unemployment, also known as Keynesian unemployment, its historical context, key events, models, and its implications in economics.
An in-depth examination of Dynamic Stochastic General Equilibrium (DSGE) models, including their historical context, key components, mathematical formulations, and applications in macroeconomic policy analysis and forecasting.
Economic Models are theoretical constructs used to analyze the behavior of economic agents through quantitative and logical methods. These models are composed of various variables, assumptions, and constraints, and are simplified representations of the real world.
Economic Order Quantity (EOQ) is a decision model used in inventory management to determine the optimal order size for purchasing or manufacturing items of stock, minimizing total ordering and holding costs.
Economic Theory is the cornerstone of economic research, focusing on the construction of economic models and development of mathematical methods for their analysis.
Understanding the elasticity of technical substitution, its historical context, importance in economic analysis, mathematical formulations, and practical implications.
An in-depth exploration of Endogenous Business Cycles, detailing their historical context, key events, explanations, models, and their importance in economics.
An English auction is a traditional auction format where an auctioneer announces a low starting price, and potential buyers place increasingly higher bids until no further bids are made. The highest bidder wins the item.
An in-depth analysis of the Existence of Equilibrium in economic models and games, discussing historical context, types, key events, mathematical models, and its importance in economics.
Exogenous expectations refer to expectations that are not determined by the parameters of the economic system and are not systematically revised. These expectations play a crucial role in economic models and decision-making processes.
An in-depth look at the Expectations-Augmented Phillips Curve, which links wage increases to demand pressure while accounting for expected inflation, revealing complex dynamics between unemployment and inflation.
An in-depth exploration of the expenditure function, its role in economics, and its practical applications in cost minimization and consumer behavior analysis.
An in-depth exploration of Export Base Theory, which suggests that economic growth in a region is primarily driven by export activities. This article covers the historical context, key components, economic models, importance, applicability, examples, and related terms.
An in-depth exploration of Factor Endowment, its historical context, types, key events, mathematical models, and its importance in international economics.
A fan chart is a diagram where the past history of a variable is plotted against time, and its future is shown as a range of forecast values rather than a point. The graph fans out after the present time, summarizing uncertainty in economic forecasts.
Financial Modelling involves the construction and use of planning and decision models based on financial data to simulate actual circumstances, facilitating decision making within an organization. This includes models like discounted cash flow, economic order quantity, decision trees, learning curves, and budgetary control.
An in-depth look at the FIXPRICE economic model, which emphasizes fixed prices in the short run and faster quantity adjustments, foundational to Keynesian and New Keynesian economics.
An in-depth exploration of the free-market economy, covering its definition, historical context, key events, and its contrast with centrally planned economies.
A detailed exploration of the Full Employment National Income, its historical context, types, key events, explanations, models, importance, applicability, and more within the field of Keynesian Economics.
A comprehensive overview of Health Economics, covering historical context, key events, detailed explanations, models, charts, importance, applicability, and more.
An in-depth exploration of the Heckscher-Ohlin Model, which theorizes the impact of countries' factor endowments on international trade patterns, prices, and production.
An in-depth exploration of Hicksian Demand (or compensated demand), its historical context, mathematical formulation, importance in economics, and real-world applicability.
A comprehensive analysis of the Income Expansion Path, exploring how income allocation between different goods changes as total income increases, along with historical context, key concepts, types, diagrams, and applications.
The Indirect Utility Function represents the maximum utility a consumer can achieve based on given prices and income, formulated as a function that connects consumption choices to budget constraints.
Initial conditions refer to the starting point from which a dynamic system, such as an economic model, evolves over time. Understanding these conditions is crucial for analyzing and predicting system behavior.
Inside Money refers to money which is an asset to the holder but a liability for someone else within the economy. This concept is crucial for understanding economic distributions and financial stability.
Intra-Industry Trade involves the simultaneous import and export of goods within the same classification, driven by factors like product differentiation and scale economies.
A comprehensive examination of the IS-LM model, a fundamental representation of Keynesian economics, its historical context, mathematical formulations, and practical applications.
The J-Curve illustrates the initial negative impact of devaluation on the trade balance, followed by a gradual improvement as export volumes increase and import volumes decrease.
An in-depth exploration of the job search process, its historical context, types, key events, and importance in the labor market. This entry covers detailed explanations, models, examples, related terms, and much more.
An exploration of leisure, its definition, significance, historical context, and various categories, including leisure economics, activities, and related terms.
The Lucas Critique highlights the need for policymakers to consider how changes in economic policies will alter the behavior of individuals and firms, thus invalidating predictions based on historical data.
The Marginal Propensity to Consume (MPC) measures the increase in consumer spending due to an increase in disposable income. Essential for economic analysis and policy formulation.
Matching refers to a model of interaction in economics, where the joint productivity or pay-offs depend on the individual characteristics of both sides. This concept is widely applied in labour market studies and propensity score matching.
An in-depth exploration of Mathematical Economics, its historical context, key events, mathematical models, applicability, and significance in understanding and solving economic problems.
A model in economics is a simplified system used to simulate aspects of the real economy. It helps analyze decision-making by firms, consumers, and governments and is crucial for understanding complex economic behaviors.
Explore the intricate dynamics of Monopolistic Competition, a market structure where firms act as monopolists but face competition due to product differentiation and potential market entrants.
Multiple equilibrium refers to the situation where an economic model has more than one solution to the equations describing its equilibrium. This concept is crucial in understanding outcomes in economics and game theory.
A comprehensive exploration of the Multiplier effect, its historical context in Keynesian economics, various types, key events, mathematical formulations, and its significance in economic theory and policy.
Partial adjustment is a process where decision-makers address discrepancies gradually, optimizing costs and minimizing risks associated with rapid changes.
The Phillips Curve describes the inverse relationship between inflation and unemployment. This economic model initially depicted the rate of increase in nominal wages against unemployment and has evolved to incorporate inflationary expectations. It helps economists understand the short-term trade-offs between inflation and unemployment and the long-term implications where the expected inflation rate equals the actual rate.
Pooling equilibrium refers to a scenario in which agents with differing characteristics choose the same action, such as high-risk and low-risk individuals choosing the same insurance contract.
An exploration of Porter's Diamond Model, highlighting key determinants such as factor conditions, demand conditions, related and supporting industries, and firm strategy, to explain national competitive advantage.
A comprehensive examination of the Principal-Agent Problem, including historical context, types, key events, detailed explanations, mathematical models, diagrams, applicability, examples, and more.
The Production Possibility Frontier (PPF) represents the locus of points showing the maximum outputs of goods and services possible with the available resources, often illustrated in a two-dimensional diagram. Its slope indicates the opportunity cost of each good in terms of the other.
Revealed Preference is an economic concept that uses consumers' choices to infer their preferences among different bundles of goods. This entry explores the historical context, types, key events, explanations, mathematical models, charts, importance, examples, and related terms.
An in-depth exploration of the robustness of economic policies, their historical context, types, key events, and detailed explanations, including mathematical models, examples, and importance in modern economic frameworks.
An equation describing the set of Pareto-efficient allocations in an economy with public goods. In an economy with one public good, one private good, and H consumers, the Samuelson rule requires that the sum of the marginal rates of substitution between the public and private goods equals the marginal cost of the public good.
An in-depth exploration of single-peaked preferences, their significance in economic theory, and their implications in voting and decision-making processes.
A comprehensive look into the Stackelberg Duopoly model, where one firm is the market leader and the other the follower, analyzing strategic interactions and market dynamics.
A comprehensive exploration of the possible future outcomes for an economy with uncertainty, examining historical context, types, key events, models, applicability, and related terms.
An in-depth exploration of the Todaro Model, examining the dynamics of rural-urban migration under high urban unemployment, and its implications for development policy.
A detailed look at the Trade Cycle, its historical context, types, key events, mathematical models, and more. Learn about John Hicks' contributions and the modern-day business cycle.
An in-depth exploration of the Warranted Growth Rate within the Harrod-Domar model, covering its mathematical underpinnings, importance, applicability, and historical context.
Static analysis in economics refers to a model or analysis that does not consider or allow for changes over time, solving all variables simultaneously. It is commonly used in supply and demand models for goods and services.
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