Anomalies in Economics
Robust patterns that deviate from a benchmark economic model, motivating behavioral and friction-based theories.
Anti-Competitive Practice
Business conduct that reduces competition (collusion or exclusion), creating market power and welfare losses.
Anti-dumping Action
A formal trade remedy investigation that can lead to duties when dumped imports cause material injury to a domestic industry.
Anti-Dumping Duty
An economically protective tariff levied to shield domestic producers from the adverse effects of dumping.
Anti-Pollution Measures
Policies that reduce pollution by internalizing externalities using taxes, permits, standards, subsidies, and information.
Anticipated Inflation
Inflation that households and firms expect and incorporate into wages, prices, and nominal interest rates.
Antitrust
Antitrust refers to US policies aimed at restricting monopoly and promoting competition, with key enforcement by the Antitrust Division of the Department of Justice and the Federal Trade Commission.
Applied Microeconomics
Using microeconomic theory and data to answer real-world questions about households, firms, and policy with credible causal inference.
Apprenticeship
A system by which firms take on workers for initial employment accompanied by training, leading to formal vocational qualifications.
Appropriation Account
An accounting statement showing how a firm’s net profit is distributed (dividends, reserves, retained earnings) after it is earned.
Appropriation Bill
Legislation that authorizes government agencies to spend funds from the treasury, typically covering discretionary spending for a fiscal year.
Arbitrage
A financial strategy involving the simultaneous purchase and sale of an asset in different markets to profit from price differences.
Arbitrage Pricing Theory
A multi-factor asset pricing framework where no-arbitrage implies expected returns are linear in factor exposures.
Arbitrageur
A trader who exploits price inconsistencies across markets or instruments, pushing prices toward the law of one price (subject to real-world frictions).
Arbitration
A dispute-resolution process where a neutral arbitrator issues a decision (often binding) outside the court system.
Arc Elasticity
An average elasticity over a discrete range, often computed with the midpoint formula to reduce dependence on the direction of change.
ARFIMA
An autoregressive fractionally integrated moving average model that captures long memory via fractional differencing.
Arm’s-Length Price
A transfer-pricing benchmark: the price (or profit margin) that unrelated parties would agree to under comparable conditions.
Arrears
Overdue payments on a contract (rent, mortgage, utilities, child support) after one or more missed due dates.
Arrow–Debreu Economy
A general equilibrium model with complete markets (state-contingent commodities) used to prove existence of competitive equilibrium and welfare theorems.
Arrow–Debreu State Price
The price today of one unit of the numeraire delivered in a specific future state of the world.
Arrow’s Impossibility Theorem
A result in social choice theory showing that no voting rule can convert individual rankings into a consistent social ranking while satisfying several natural fairness conditions.
Asia-Pacific Economic Cooperation (APEC)
A regional forum of 21 Asia-Pacific economies that promotes trade and investment liberalization, facilitation, and economic cooperation through non-binding commitments.
Asian Financial Crisis (1997–1998)
A regional crisis involving currency collapses, banking stress, and sharp recessions across several East and Southeast Asian economies after sudden stops in capital flows.
Asian Infrastructure Investment Bank (AIIB)
A multilateral development bank that finances infrastructure and sustainable development projects, with a focus on Asia.
Assembly Line
A production system where a product moves through sequential workstations, enabling specialization and high throughput.
Asset Motive (Speculative Motive for Holding Money)
The desire to hold money rather than interest-bearing assets when investors expect bond prices to fall (interest rates to rise) or value liquidity under uncertainty.
Asset Prices
The market value of claims on future payoffs, shaped by expected cash flows, discount rates, and risk premia.
Asset Stripping
A takeover or restructuring strategy focused on selling a company’s assets (or divisions) to realize value, sometimes at the expense of long-run operations and stakeholders.
Asset-Backed Security (ABS)
A bond-like security whose cash flows come from a pool of underlying assets (e.g., auto loans, credit card receivables), typically structured through securitization.
Assets
Resources with economic value—such as physical capital, financial claims, and intangible rights—that can generate future benefits.
Assisted Area
A UK region made eligible for special government assistance under the state aid rules of the European Commission to encourage investment due to persistently above-average unemployment.
Asymmetric Information
A situation where some participants in an economic transaction have access to more, or better, relevant information than other participants.
Asymmetric Shocks
Definition and analysis of asymmetric shocks in economics
Asymptotic Distribution
A distribution used to approximate the true finite sample distribution of a random variable.
Asymptotic Theory
A theory of the limiting behavior of estimators and functions of estimators as sample size increases
Atkinson Index
An inequality measure based on equally distributed equivalent income, with an explicit parameter for inequality aversion.
Auction
An overview of auctions, their types, and how prices are determined through bidding mechanisms.
Auctioneer
A comprehensive overview of the role of an auctioneer in managing the bidding process.
Audit
The process of examining and verifying a company's financial records to ensure accuracy, compliance, and consistency with established standards.
Auditor
A professional (or firm) that examines financial information and controls to provide assurance that financial statements are fairly presented.
Augmented Dickey-Fuller Test
A statistical test used to determine the presence of unit root in time series data, thus helping in analysis of data stationarity.
Augmented Phillips Curve
An economics concept that enhances the original Phillips curve by incorporating expectations and other variables.
Austerity Measures
Exploring the concept, historical context, and analytical frameworks of austerity measures in economics.
Autarchy
The state or condition of economic independence and self-sufficiency, characterized by the absence of trade.
Authorized Capital (Authorized Share Capital)
The maximum share capital a corporation is legally permitted to issue under its charter or governing documents.
Autocorrelation
A comprehensive dictionary entry for the economic term 'autocorrelation,' examining its definition, historical context, and relevance across various economic frameworks.
Autocorrelation Coefficient
A metric evaluating the correlation between a variable and its lagged values in time series analysis.
Autocorrelation Function (ACF)
A sequence of correlations between a time series and its own lagged values, used to describe persistence and guide time-series modeling.
Autocovariance
Covariance between a random variable and its lagged values in time series analysis
Autocovariance Function
A sequence of autocovariances of a covariance stationary time series process as a function of the lag length.
Automated Econometrics
An approach in empirical econometrics where model evaluation and selection is performed by a computerized algorithm.
Automatic Stabilizers
Economic mechanisms that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.
Automation
Using machines, software, or algorithms to perform tasks with limited human intervention, affecting productivity and labor markets.
Autonomous Consumption
Understanding autonomous consumption - the component of consumption that is independent of current income.
Autonomous Investment
Definition and detailed analysis of autonomous investment in economics.
Autonomous Pension Funds
Definition and analysis of autonomous pension funds
Autoregressive Conditional Heteroscedasticity (ARCH)
An entry for understanding Autoregressive Conditional Heteroscedasticity (ARCH) models used in time series analysis in economics.
Autoregressive Integrated Moving Average (ARIMA) Model
A time-series forecasting model that combines autoregression, differencing, and moving-average shocks.
Autoregressive Moving Average (ARMA (p, q)) Model
A comprehensive dictionary entry on the Autoregressive Moving Average (ARMA (p, q)) model utilized in time series analysis within economics.
Autoregressive Process
An in-depth analysis of the autoregressive process in time series modeling.
Average Cost
Total cost of production divided by quantity produced, combining both average fixed cost and average variable cost.
Average Cost Pricing
A policy of setting prices to cover average costs, often used by government-controlled or non-profit entities.
Average Earnings Scheme
Definition and analysis of the term "average earnings scheme," including its practical applications and relevance in economics.
Average Tax Rate
The share of a tax base paid in tax: total tax liability divided by total taxable base.
Averch–Johnson Effect
A distortion under rate-of-return regulation where firms may choose an inefficiently capital-intensive input mix.
Avoidable Cost
An economic term referring to costs that can be eliminated by ceasing an activity or production.
Avoidance
Exploring the concept of avoidance, with a focus on its applications within economics and tax policy, and its differentiation from evasion.
Axiom
A logical starting point used in economic deduction without needing proof or demonstration.
Axioms of Preference
A set of basic concepts characterizing rational preferences in economics.