economic theory
model trying to explain economic reality
rotten kid theorem
thesis in economics that a child in a US family may be perfectly selfish because it maximizes its own utility
business cycle
fluctuation in the degree of utilization of the production potential of an economy
interest rate parity
equilibrium state for interest rates in two countries/currencies
margin
set of constraints conceptualised as a border
capability approach
economic theory
liquidity preference
the demand for money, considered as liquidity
permanent income hypothesis
economic theory that one’s consumption at some time is determined not just by current income but also by expected income in future years (“permanent income“)
factor price equalization
economic theory by P. A. Samuelson, which states that the prices of identical factors of production will be equalized across countries due to international trade in commodities
law of value
central concept in Karl Marx's critique of political economy
product life-cycle theory
7. Provide examples of products for each of the following IPLC stages. a. Local innovation b. Overseas innovation
metallism
economic principle
growth theory
a number of connected theories of long-term economic growth
theory of imperialism
theory of capitalism and globalization
general equilibrium theory
theory of equilibrium between supply and demand
tragedy of the commons
self-interests causing depletion of a shared resource
consumption theory
macroeconomic theory
modern portfolio theory
mathematical framework for assembling a portfolio of assets such that the expected return is maximized for a given level of risk, defined as variance
developmentalism
theory of economic development
Taylor rule
reduced form approximation of the responsiveness of the nominal interest rate, as set by the central bank, to changes in inflation, output, or other economic conditions
sunspots
economic theory: extrinsic random variable, that is, a random variable that does not affect economic fundamentals (such as endowments, preferences, or technology)
Austrian business cycle theory
economic theory
competitive socialism
economic theory
international trade theory
subfield of economics focusing on trade between nations
subsumption of work in capitalism
Marxist theory about a change in the relationship between economy and society in capitalist economies
theory of the second best
branch of economics studying next-best alternatives
eco-capitalism
the view that capital exists in nature as "natural capital"
Southern Question
Economic gap between Northern and Southern Italy
backstop resources
theory that states that as a heavily used limited resource becomes expensive, alternative resources will become cheap by comparison, therefore making the alternatives economically viable options
Seneca effect
Economic model
Critique of political economy
Critique of political economy questions the very object of "the economy".
supply and demand
economic model of price determination in microeconomics
mutualism
anarchist school of thought and socialist economic theory
innovation economics
economic theory of innovation
trickle-up effect
economic theory
Marxism
economic and sociopolitical worldview
regulation school
group of writers in political economy
Ricardian equivalence
Economic theory
prospect theory
theory of behavioral economics and behavioral finance that was developed by Daniel Kahneman and Amos Tversky in 1979
three-sector model
economic theory which divides economies into three sectors (primary, secondary, tertiary)
three-sector model
economic theory which divides economies into three sectors (primary, secondary, tertiary)
productivism
ideology
Habakkuk thesis
theory in economic history
hemline index
economic theory
surplus value
central concept in Karl Marx's theory of value and critique of political economy
labor theory of value
in economics, the theory that the economic value of a good or service is determined by the total amount of socially necessary labor required to produce it
entitlement theory
Robert Nozick's theory of distributive justice