Life Cycle
The lifetime pattern of income and consumption, illustrating how financial behaviors evolve from youth through retirement.
Life Insurance
A comprehensive look at life insurance, its definition, historical context, various economic frameworks, and its applications.
Likelihood Function
A comprehensive overview of the likelihood function in economics and statistics, detailing its interpretation, application, and significance.
Likelihood Ratio Test
A statistical test for evaluating restrictions on parameters in maximum likelihood estimation
Limit Pricing
A strategy wherein an incumbent firm sets a price low enough to deter new firms from entering the market.
Limited Company
Exploration of the term 'limited company' within the context of economics, including its definition, historical context, and major analytical frameworks.
Limited Dependent Variable
A dependent variable that takes values only from a restricted set.
Limited Information Maximum Likelihood (LIML) Estimation
An overview of Limited Information Maximum Likelihood (LIML) estimation used in linear simultaneous equations models.
Limited Liability
The system by which shareholders in a company are not liable for its debts beyond the nominal value of their shares.
Lindahl Equilibrium
A method for determining the optimal provision and cost allocation of public goods among consumers, aiming to achieve Pareto efficiency. This equilibrium assesses individual demand given the shared cost across the population.
Linear Approximation
Approximation of an arbitrary function by a linear function, often used to simplify complex economic models.
Linear Probability Model
An overview of the linear probability model used in econometrics and its applications, strengths, and limitations.
Linear Programming
A mathematical procedure for finding the maximum or minimum value of a linear objective function subject to linear constraints.
Linear Regression
A detailed exploration of linear regression, its methodologies, and its application in econometrics.
Liquid Assets
A discussion on liquid assets, their characteristics, relevant economic theories, and practical implications.
Liquidation
The process of closing down a business and disposing of its assets to pay off debts.
Liquidity
The property of assets, of being easily turned into money rapidly and at a fairly predictable price.
Liquidity Constraint
An arbitrary limit on the amount that an individual or a firm can borrow.
Liquidity Preference
An exploration of liquidity preference, the tendency to favor assets that can easily be converted into cash, and its implications in different economic frameworks.
Liquidity Ratio
The proportion between a bank or other financial institution’s holdings of liquid assets and its total liabilities.
Liquidity Risk
The risk arising from the possibility that there will be no active market for the assets held by an economic agent.
Liquidity Trap
A situation in which real interest rates cannot be reduced by any action of the monetary authorities.
Lisbon Agreement
An international agreement between the EU countries that amends the Maastricht Treaty and the Treaty of Rome, comprising the constitutional basis of the EU.
Lishu
The affiliation of a firm in China with various levels of government.
Listing
Listing Agreement by a stock exchange to allow a company’s shares to be traded.
Living Costs and Food Survey
A comprehensive survey of household expenditures and cost of living in the UK.
Lloyd’s
An in-depth look into Lloyd’s, a prominent London-based insurance market known for its global operations by individual investors or 'names' and its recent inclusion of company memberships.
LM Curve
An introduction to the LM curve, a Keynesian economics concept representing money market equilibrium
Loan
Understanding loans, their types, and implications in economics
Loan Portfolio
The collection of loans held as assets by a financial institution, designed to spread risk and maintain profitability.
Loan-Loss Reserve
A reserve fund held by a financial institution to cover potential bad debts from loans.
Loanable Funds
Theory of interest rate determination by the demand and supply of loanable funds.
Loans-to-Deposit Ratio
A measure that represents the total value of a bank’s loans as a percentage of the total value of its deposits, often used as an indicator of liquidity.
Lobbying
Activities devoted to informing politicians of the views of various interest groups, and persuading them to draft legislation or to vote in accordance with these views
Local Authority Housing
State-financed housing for rent, provided in the UK through local authorities.
Local Content
A comprehensive look at the concept of local content in economics, its implications, and applications in trade and investment policies.
Local Government
An exploration of the structure, function, and characteristics of local government entities.
Local Public Good
A comprehensive overview of the economic concept 'local public good' within the context of various economic frameworks.
Location
The geographical position of a firm’s premises or the marketing position of its product.
Location-Scale Family
An exploration of the Location-Scale family of distributions in economics and statistics
Location-Scale Family of Distributions
Definition and meaning of the location-scale family of distributions, exploring its foundational concepts and applications in various economic frameworks.
Lock-Out
An industrial action by employers, where workers are excluded from their workplace and pay without being dismissed.
Locomotive Principle
The principle describing how growth in leading sectors or countries can drive wider economic expansion.
Log-Linear Function
A function in which the logarithm of the dependent variable is linear in the logarithm of its argument.
Log-Normal Distribution
A specialized probability distribution of a random variable such that its logarithm is normally distributed, typically resulting from multiplicative effects.
Log-Rolling
Detailed exploration of log-rolling, a practice in legislative bodies involving strategic voting to pass measures benefiting specific constituencies.
Logarithmic Scale
A detailed exploration of the logarithmic scale, its uses, and meanings in economic analysis.
Logistic Curve
A curve reflecting the change over time of a variable with limits in economic phenomena
Logistic Distribution
A continuous probability distribution with an S-shaped cumulative function, widely used in econometrics.
Logit Model
A statistical model used for predicting the probability of a binary outcome.
Logit Model
A statistical model used for predicting the probability of a binary outcome.
Lomé Convention
An international agreement reached in 1975 by the European Economic Community granting associate status to French overseas territories.
London International Financial Futures and Options Exchange
London International Financial Futures and Options Exchange (LIFFE) - A financial futures market opened in London in 1982, instrumental in trading a variety of financial instruments, including options and futures contracts on government bonds, stock indices, currencies, and interest rates. It merged with London Traded Options Market in 1992 and is now part of NYSE Euronext.
London Stock Exchange
A comprehensive entry on the London Stock Exchange, detailing its definition, historical significance, and major analytical frameworks.
Long Position
A situation where market participants hold a positive quantity of a commodity or asset, anticipating a rise in their prices.
Long Rate
An in-depth look at the long rate, focusing on its definition, meaning, historical context, and major analytical frameworks.
Long Run
Understanding the long run in economic analysis, where all variables can be changed.
Long-Dated Security
A thorough examination of long-dated security, its definitions, implications, and importance in economics.
Long-Run Average Cost
Definition and explanation of long-run average cost (LRAC) in economics.
Long-Run Marginal Cost
Definition and detailed explanation of long-run marginal cost in economics.
Long-Run Phillips Curve
A curve depicting the long-term relationship between inflation and unemployment.
Long-Term Care
Comprehensive support measures and services required for prolonged personal and health care.
Long-Term Interest Rate
The rate of interest paid on government securities with a period to maturity of ten years or above.
Long-Term Unemployment
The economics term 'long-term unemployment' explicates a period of unemployment lasting more than one year and its associated economic implications and policy considerations.
Lorenz Curve
A graph representing income or wealth distribution in a population
Lorenz Curve
A graph representing income or wealth distribution in a population
Loss
The result of a business operation where expenditures exceed receipts, leading to a reduction in a business's capital.
Loss Leader
Loss leader refers to a pricing strategy where a product is sold at a low price, often below cost, to attract customers who will then purchase additional, higher-margin products.
Louvre Accord
An agreement reached in February 1987 between the G6 industrial countries concerning exchange rates stabilization.
Lucas Critique
The argument that government policies should consider how decision rules of private agents change with policy changes.
Lump of Labour Fallacy
The belief that the number of jobs in an economy is fixed, and the economic analysis disproving this belief.
Lump-Sum Tax
A fixed tax amount that does not depend on a taxpayer's choices; a benchmark for non-distortionary taxation.
Lumpiness
A term in economics referring to the quality of being indivisible or not able to be broken down into smaller units.
Luxury
Luxury: Definition and Meaning in Economics
M0
The narrowest definition of the money supply, including notes and coin in circulation, banks' till money, and balances with the central bank.
M1
An examination of M1 as a measure of the money supply, including its components and significance in different economies.
M2
A detailed look into the definition, components, and significance of M2 as a measure of money supply in various economies.
M3
A comprehensive definition of M3 and its implications in the context of broader money supply definitions.
Maastricht Treaty
The 1992 Treaty on European Union that created the EU and set the roadmap for Economic and Monetary Union and the euro.
Macroeconometrics
The branch of econometrics that has developed tools specifically designed to analyze macroeconomic data.
Macroeconomic Policy
An exploration of macroeconomic policy, its objectives, tools, and frameworks.
Macroeconomic Trilemma
An exploration of the macroeconomic trilemma, balancing exchange rate stability, monetary policy independence, and capital market openness in an open economy.
Macroeconomics
The branch of economics that examines aggregate quantities in the economy, including total employment, production, consumption, and imports and exports.
Madoff
An entry about Bernard Madoff and his notorious Ponzi scheme.
Majority Shareholder
A description of majority shareholders, their role, and their influence within a company.
Majority Voting
A voting method which selects as the winner the option with the majority of votes and its implications in economic theories
Malthusian Problem
The idea that population growth can outpace resource growth, pushing living standards back toward subsistence in pre-industrial settings.
Managed Currency
A type of currency system influenced by governmental interventions in foreign exchange markets to stabilize or alter currency values.
Managed Floating Exchange Rate
A system under which a country’s exchange rate is not pegged, but the monetary authorities manage it through market interventions and macroeconomic policies.
Managed Trade
Managed trade refers to international trade regulated by government agreements and negotiations rather than market forces.
Management
A comprehensive exploration of management, its historical context, definitions, analytical frameworks, case studies, and further readings.
Management Accounting
The role of accounting focused on providing valuable information to enhance internal managerial success.
Management Buy-Out
The acquisition of a firm's equity capital by its management.
Managerial Theories of the Firm
Examination of theories explaining firm conduct through managerial motivations.
Mandatory Spending Programme
The component of government expenditure that the government is legally required to execute.
Margin
Understand the concept of margin, its applications in trading, and its significance in economic transactions.
Margin Requirement
Exploring the fundamentals and implications of margin requirements in financial transactions.
Margin Trading
An analysis of margin trading in financial markets, highlighting borrowing practices, risks, and required collateral.
Marginal Benefit
Understanding the concept of marginal benefit in economics - the additional benefit from an increase in an activity.