doc_id int32 0 2.25M | text stringlengths 101 8.13k | source stringlengths 38 44 |
|---|---|---|
22,000 | Some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, however, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas previously treated in o... | https://en.wikipedia.org/wiki?curid=9223 |
22,001 | Gary Becker, a contributor to the expansion of economics into new areas, described the approach he favoured as "combin[ing the] assumptions of maximizing behaviour, stable preferences, and market equilibrium, used relentlessly and unflinchingly." One commentary characterizes the remark as making economics an approach r... | https://en.wikipedia.org/wiki?curid=9223 |
22,002 | According to economist Ha-Joon Chang economics should be defined not in terms of its methodology or theoretical approach but in terms of its subject matter. Ha-Joon Chang finds a definition like "the science which studies human behavior as a relationship between ends and scarce means which have alternative uses" very p... | https://en.wikipedia.org/wiki?curid=9223 |
22,003 | Questions regarding distribution of resources are found throughout the writings of the Boeotian poet Hesiod and several economic historians have described Hesiod himself as the "first economist". However, the word Oikos, the Greek word from which the word economy derives, was used for issues regarding how to manage a h... | https://en.wikipedia.org/wiki?curid=9223 |
22,004 | Two groups, who later were called "mercantilists" and "physiocrats", more directly influenced the subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century ... | https://en.wikipedia.org/wiki?curid=9223 |
22,005 | Physiocrats, a group of 18th-century French thinkers and writers, developed the idea of the economy as a circular flow of income and output. Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth. Thus, they opposed the mercantilist po... | https://en.wikipedia.org/wiki?curid=9223 |
22,006 | Adam Smith (1723–1790) was an early economic theorist. Smith was harshly critical of the mercantilists but described the physiocratic system "with all its imperfections" as "perhaps the purest approximation to the truth that has yet been published" on the subject. | https://en.wikipedia.org/wiki?curid=9223 |
22,007 | The publication of Adam Smith's "The Wealth of Nations" in 1776, has been described as "the effective birth of economics as a separate discipline." The book identified land, labour, and capital as the three factors of production and the major contributors to a nation's wealth, as distinct from the physiocratic idea tha... | https://en.wikipedia.org/wiki?curid=9223 |
22,008 | Smith discusses potential benefits of specialization by division of labour, including increased labour productivity and gains from trade, whether between town and country or across countries. His "theorem" that "the division of labor is limited by the extent of the market" has been described as the "core of a theory of... | https://en.wikipedia.org/wiki?curid=9223 |
22,009 | In an argument that includes "one of the most famous passages in all economics," Smith represents every individual as trying to employ any capital they might command for their own advantage, not that of the society, and for the sake of profit, which is necessary at some level for employing capital in domestic industry,... | https://en.wikipedia.org/wiki?curid=9223 |
22,010 | The Rev. Thomas Robert Malthus (1798) used the concept of diminishing returns to explain low living standards. Human population, he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically. The force of a rapidly growing population against a limited amount of land me... | https://en.wikipedia.org/wiki?curid=9223 |
22,011 | While Adam Smith emphasized the production of income, David Ricardo (1817) focused on the distribution of income among landowners, workers, and capitalists. Ricardo saw an inherent conflict between landowners on the one hand and labour and capital on the other. He posited that the growth of population and capital, pres... | https://en.wikipedia.org/wiki?curid=9223 |
22,012 | Coming at the end of the classical tradition, John Stuart Mill (1848) parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system. Mill pointed to a distinct difference between the market's two roles: allocation of resources and distribution of i... | https://en.wikipedia.org/wiki?curid=9223 |
22,013 | Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it". Smith maintained that, with rent and profit, other costs besides wages also enter the price of a commodity. Other classical economists presented variations on Smith, termed the '... | https://en.wikipedia.org/wiki?curid=9223 |
22,014 | Marxist (later, Marxian) economics descends from classical economics and it derives from the work of Karl Marx. The first volume of Marx's major work, "Das Kapital", was published in German in 1867. In it, Marx focused on the labour theory of value and the theory of surplus value which, he believed, explained the explo... | https://en.wikipedia.org/wiki?curid=9223 |
22,015 | Marxian economics was further developed by Karl Kautsky (1854-1938)'s "The Economic Doctrines of Karl Marx" and "The Class Struggle (Erfurt Program)", Rudolf Hilferding's (1877-1941) "Finance Capital", Vladimir Lenin (1870-1924)'s "The Development of Capitalism in Russia" and "Imperialism, the Highest Stage of Capitali... | https://en.wikipedia.org/wiki?curid=9223 |
22,016 | At the dawn as a social science, economics was defined and discussed at length as the study of production, distribution, and consumption of wealth by Jean-Baptiste Say in his "Treatise on Political Economy or, The Production, Distribution, and Consumption of Wealth" (1803). These three items are considered by the scien... | https://en.wikipedia.org/wiki?curid=9223 |
22,017 | A body of theory later termed "neoclassical economics" or "marginalism" formed from about 1870 to 1910. The term "economics" was popularized by such neoclassical economists as Alfred Marshall and Mary Paley Marshall as a concise synonym for "economic science" and a substitute for the earlier "political economy". This c... | https://en.wikipedia.org/wiki?curid=9223 |
22,018 | Neoclassical economics systematized supply and demand as joint determinants of price and quantity in market equilibrium, affecting both the allocation of output and the distribution of income. It dispensed with the labour theory of value inherited from classical economics in favour of a marginal utility theory of value... | https://en.wikipedia.org/wiki?curid=9223 |
22,019 | In microeconomics, neoclassical economics represents incentives and costs as playing a pervasive role in shaping decision making. An immediate example of this is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded. In macroeconomics it is reflected in an ea... | https://en.wikipedia.org/wiki?curid=9223 |
22,020 | Neoclassical economics is occasionally referred as "orthodox economics" whether by its critics or sympathizers. Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalize earlier analysis, such as econometrics, game theory, analysis of market failure and ... | https://en.wikipedia.org/wiki?curid=9223 |
22,021 | Neoclassical economics studies the behaviour of individuals, households, and organizations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited re... | https://en.wikipedia.org/wiki?curid=9223 |
22,022 | An approach to understanding these processes, through the study of agent behaviour under scarcity, may go as follows: | https://en.wikipedia.org/wiki?curid=9223 |
22,023 | The continuous interplay (exchange or trade) done by economic actors in all markets sets the prices for all goods and services which, in turn, make the rational managing of scarce resources possible. At the same time, the decisions (choices) made by the same actors, while they are pursuing their own interest, determine... | https://en.wikipedia.org/wiki?curid=9223 |
22,024 | Keynesian economics derives from John Maynard Keynes, in particular his book "The General Theory of Employment, Interest and Money" (1936), which ushered in contemporary macroeconomics as a distinct field. The book focused on determinants of national income in the short run when prices are relatively inflexible. Keynes... | https://en.wikipedia.org/wiki?curid=9223 |
22,025 | Keynesian economics has two successors. Post-Keynesian economics also concentrates on macroeconomic rigidities and adjustment processes. Research on micro foundations for their models is represented as based on real-life practices rather than simple optimizing models. It is generally associated with the University of C... | https://en.wikipedia.org/wiki?curid=9223 |
22,026 | New-Keynesian economics is also associated with developments in the Keynesian fashion. Within this group researchers tend to share with other economists the emphasis on models employing micro foundations and optimizing behaviour but with a narrower focus on standard Keynesian themes such as price and wage rigidity. The... | https://en.wikipedia.org/wiki?curid=9223 |
22,027 | The Chicago School of economics is best known for its free market advocacy and monetarist ideas. According to Milton Friedman and monetarists, market economies are inherently stable if the money supply does not greatly expand or contract. Ben Bernanke, former Chairman of the Federal Reserve, is among the economists tod... | https://en.wikipedia.org/wiki?curid=9223 |
22,028 | Milton Friedman effectively took many of the basic principles set forth by Adam Smith and the classical economists and modernized them. One example of this is his article in the 13 September 1970 issue of "The New York Times Magazine", in which he claims that the social responsibility of business should be "to use its ... | https://en.wikipedia.org/wiki?curid=9223 |
22,029 | The Austrian School emphasizes human action, property rights and the freedom to contract and transact to have a thriving and successful economy. It also emphasizes that the state should play an infinitesimally small role (if any role) in the regulation of economic activity between two transacting parties. A key compone... | https://en.wikipedia.org/wiki?curid=9223 |
22,030 | Other well-known schools or trends of thought referring to a particular style of economics practised at and disseminated from well-defined groups of academicians that have become known worldwide, include the Freiburg School, the School of Lausanne, post-Keynesian economics and the Stockholm school. Contemporary mainstr... | https://en.wikipedia.org/wiki?curid=9223 |
22,031 | Within macroeconomics there is, in general order of their historical appearance in the literature; classical economics, neoclassical economics, Keynesian economics, the neoclassical synthesis, monetarism, new classical economics, New Keynesian economics and the new neoclassical synthesis. In general, alternative develo... | https://en.wikipedia.org/wiki?curid=9223 |
22,032 | Mainstream economic theory relies upon "a priori" quantitative economic models, which employ a variety of concepts. Theory typically proceeds with an assumption of "ceteris paribus", which means holding constant explanatory variables other than the one under consideration. When creating theories, the objective is to fi... | https://en.wikipedia.org/wiki?curid=9223 |
22,033 | In microeconomics, principal concepts include supply and demand, marginalism, rational choice theory, opportunity cost, budget constraints, utility, and the theory of the firm. Early macroeconomic models focused on modelling the relationships between aggregate variables, but as the relationships appeared to change over... | https://en.wikipedia.org/wiki?curid=9223 |
22,034 | The aforementioned microeconomic concepts play a major part in macroeconomic models – for instance, in monetary theory, the quantity theory of money predicts that increases in the growth rate of the money supply increase inflation, and inflation is assumed to be influenced by rational expectations. In development econo... | https://en.wikipedia.org/wiki?curid=9223 |
22,035 | Expositions of economic reasoning often use two-dimensional graphs to illustrate theoretical relationships. At a higher level of generality, mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. Paul Samuelson's treatise "Foundations of Economic Analy... | https://en.wikipedia.org/wiki?curid=9223 |
22,036 | Economic theories are frequently tested empirically, largely through the use of econometrics using economic data. The controlled experiments common to the physical sciences are difficult and uncommon in economics, and instead broad data is observationally studied; this type of testing is typically regarded as less rigo... | https://en.wikipedia.org/wiki?curid=9223 |
22,037 | Statistical methods such as regression analysis are common. Practitioners use such methods to estimate the size, economic significance, and statistical significance ("signal strength") of the hypothesized relation(s) and to adjust for noise from other variables. By such means, a hypothesis may gain acceptance, although... | https://en.wikipedia.org/wiki?curid=9223 |
22,038 | Criticisms based on professional standards and non-replicability of results serve as further checks against bias, errors, and overgeneralization, although much economic research has been accused of being non-replicable, and prestigious journals have been accused of not facilitating replication through the provision of ... | https://en.wikipedia.org/wiki?curid=9223 |
22,039 | In applied economics, input–output models employing linear programming methods are quite common. Large amounts of data are run through computer programs to analyse the impact of certain policies; IMPLAN is one well-known example. | https://en.wikipedia.org/wiki?curid=9223 |
22,040 | Experimental economics has promoted the use of scientifically controlled experiments. This has reduced the long-noted distinction of economics from natural sciences because it allows direct tests of what were previously taken as axioms. In some cases these have found that the axioms are not entirely correct; for exampl... | https://en.wikipedia.org/wiki?curid=9223 |
22,041 | In behavioural economics, psychologist Daniel Kahneman won the Nobel Prize in economics in 2002 for his and Amos Tversky's empirical discovery of several cognitive biases and heuristics. Similar empirical testing occurs in neuroeconomics. Another example is the assumption of narrowly selfish preferences versus a model ... | https://en.wikipedia.org/wiki?curid=9223 |
22,042 | Microeconomics examines how entities, forming a market structure, interact within a market to create a market system. These entities include private and public players with various classifications, typically operating under scarcity of tradable units and light government regulation. The item traded may be a tangible pr... | https://en.wikipedia.org/wiki?curid=9223 |
22,043 | In theory, in a free market the aggregates (sum of) of "quantity demanded" by buyers and "quantity supplied" by sellers may reach economic equilibrium over time in reaction to price changes; in practice, various issues may prevent equilibrium, and any equilibrium reached may not necessarily be morally equitable. For ex... | https://en.wikipedia.org/wiki?curid=9223 |
22,044 | Various market structures exist. In perfectly competitive markets, no participants are large enough to have the market power to set the price of a homogeneous product. In other words, every participant is a "price taker" as no participant influences the price of a product. In the real world, markets often experience im... | https://en.wikipedia.org/wiki?curid=9223 |
22,045 | Forms include monopoly (in which there is only one seller of a good), duopoly (in which there are only two sellers of a good), oligopoly (in which there are few sellers of a good), monopolistic competition (in which there are many sellers producing highly differentiated goods), monopsony (in which there is only one buy... | https://en.wikipedia.org/wiki?curid=9223 |
22,046 | Microeconomics studies individual markets by simplifying the economic system by assuming that activity in the market being analysed does not affect other markets. This method of analysis is known as partial-equilibrium analysis (supply and demand). This method aggregates (the sum of all activity) in only one market. Ge... | https://en.wikipedia.org/wiki?curid=9223 |
22,047 | In microeconomics, production is the conversion of inputs into outputs. It is an economic process that uses inputs to create a commodity or a service for exchange or direct use. Production is a flow and thus a rate of output per period of time. Distinctions include such production alternatives as for consumption (food,... | https://en.wikipedia.org/wiki?curid=9223 |
22,048 | Opportunity cost is the economic cost of production: the value of the next best opportunity foregone. Choices must be made between desirable yet mutually exclusive actions. It has been described as expressing "the basic relationship between scarcity and choice". For example, if a baker uses a sack of flour to make pret... | https://en.wikipedia.org/wiki?curid=9223 |
22,049 | Inputs used in the production process include such primary factors of production as labour services, capital (durable produced goods used in production, such as an existing factory), and land (including natural resources). Other inputs may include intermediate goods used in production of final goods, such as the steel ... | https://en.wikipedia.org/wiki?curid=9223 |
22,050 | Economic efficiency measures how well a system generates desired output with a given set of inputs and available technology. Efficiency is improved if more output is generated without changing inputs, or in other words, the amount of "waste" is reduced. A widely accepted general standard is Pareto efficiency, which is ... | https://en.wikipedia.org/wiki?curid=9223 |
22,051 | The production–possibility frontier (PPF) is an expository figure for representing scarcity, cost, and efficiency. In the simplest case an economy can produce just two goods (say "guns" and "butter"). The PPF is a table or graph (as at the right) showing the different quantity combinations of the two goods producible w... | https://en.wikipedia.org/wiki?curid=9223 |
22,052 | Scarcity is represented in the figure by people being willing but unable in the aggregate to consume "beyond the PPF" (such as at "X") and by the negative slope of the curve. If production of one good "increases" along the curve, production of the other good "decreases", an inverse relationship. This is because increas... | https://en.wikipedia.org/wiki?curid=9223 |
22,053 | The slope of the curve at a point on it gives the trade-off between the two goods. It measures what an additional unit of one good costs in units forgone of the other good, an example of a "real opportunity cost". Thus, if one more Gun costs 100 units of butter, the opportunity cost of one Gun is 100 Butter. "Along the... | https://en.wikipedia.org/wiki?curid=9223 |
22,054 | By construction, each point on the curve shows "productive efficiency" in maximizing output for given total inputs. A point "inside" the curve (as at "A"), is feasible but represents "production inefficiency" (wasteful use of inputs), in that output of "one or both goods" could increase by moving in a northeast directi... | https://en.wikipedia.org/wiki?curid=9223 |
22,055 | Much applied economics in public policy is concerned with determining how the efficiency of an economy can be improved. Recognizing the reality of scarcity and then figuring out how to organize society for the most efficient use of resources has been described as the "essence of economics", where the subject "makes its... | https://en.wikipedia.org/wiki?curid=9223 |
22,056 | Specialization is considered key to economic efficiency based on theoretical and empirical considerations. Different individuals or nations may have different real opportunity costs of production, say from differences in stocks of human capital per worker or capital/labour ratios. According to theory, this may give a c... | https://en.wikipedia.org/wiki?curid=9223 |
22,057 | Even if one region has an absolute advantage as to the ratio of its outputs to inputs in every type of output, it may still specialize in the output in which it has a comparative advantage and thereby gain from trading with a region that lacks any absolute advantage but has a comparative advantage in producing somethin... | https://en.wikipedia.org/wiki?curid=9223 |
22,058 | It has been observed that a high volume of trade occurs among regions even with access to a similar technology and mix of factor inputs, including high-income countries. This has led to investigation of economies of scale and agglomeration to explain specialization in similar but differentiated product lines, to the ov... | https://en.wikipedia.org/wiki?curid=9223 |
22,059 | The general theory of specialization applies to trade among individuals, farms, manufacturers, service providers, and economies. Among each of these production systems, there may be a corresponding "division of labour" with different work groups specializing, or correspondingly different types of capital equipment and ... | https://en.wikipedia.org/wiki?curid=9223 |
22,060 | An example that combines features above is a country that specializes in the production of high-tech knowledge products, as developed countries do, and trades with developing nations for goods produced in factories where labour is relatively cheap and plentiful, resulting in different in opportunity costs of production... | https://en.wikipedia.org/wiki?curid=9223 |
22,061 | Theory and observation set out the conditions such that market prices of outputs and productive inputs select an allocation of factor inputs by comparative advantage, so that (relatively) low-cost inputs go to producing low-cost outputs. In the process, aggregate output may increase as a by-product or by design. Such s... | https://en.wikipedia.org/wiki?curid=9223 |
22,062 | Prices and quantities have been described as the most directly observable attributes of goods produced and exchanged in a market economy. The theory of supply and demand is an organizing principle for explaining how prices coordinate the amounts produced and consumed. In microeconomics, it applies to price and output d... | https://en.wikipedia.org/wiki?curid=9223 |
22,063 | For a given market of a commodity, "demand" is the relation of the quantity that all buyers would be prepared to purchase at each unit price of the good. Demand is often represented by a table or a graph showing price and quantity demanded (as in the figure). Demand theory describes individual consumers as rationally c... | https://en.wikipedia.org/wiki?curid=9223 |
22,064 | The law of demand states that, in general, price and quantity demanded in a given market are inversely related. That is, the higher the price of a product, the less of it people would be prepared to buy (other things unchanged). As the price of a commodity falls, consumers move toward it from relatively more expensive ... | https://en.wikipedia.org/wiki?curid=9223 |
22,065 | "Supply" is the relation between the price of a good and the quantity available for sale at that price. It may be represented as a table or graph relating price and quantity supplied. Producers, for example business firms, are hypothesized to be "profit maximizers", meaning that they attempt to produce and supply the a... | https://en.wikipedia.org/wiki?curid=9223 |
22,066 | That is, the higher the price at which the good can be sold, the more of it producers will supply, as in the figure. The higher price makes it profitable to increase production. Just as on the demand side, the position of the supply can shift, say from a change in the price of a productive input or a technical improvem... | https://en.wikipedia.org/wiki?curid=9223 |
22,067 | Market equilibrium occurs where quantity supplied equals quantity demanded, the intersection of the supply and demand curves in the figure above. At a price below equilibrium, there is a shortage of quantity supplied compared to quantity demanded. This is posited to bid the price up. At a price above equilibrium, there... | https://en.wikipedia.org/wiki?curid=9223 |
22,068 | People frequently do not trade directly on markets. Instead, on the supply side, they may work in and produce through "firms". The most obvious kinds of firms are corporations, partnerships and trusts. According to Ronald Coase, people begin to organize their production in firms when the costs of doing business becomes... | https://en.wikipedia.org/wiki?curid=9223 |
22,069 | In perfectly competitive markets studied in the theory of supply and demand, there are many producers, none of which significantly influence price. Industrial organization generalizes from that special case to study the strategic behaviour of firms that do have significant control of price. It considers the structure o... | https://en.wikipedia.org/wiki?curid=9223 |
22,070 | Managerial economics applies microeconomic analysis to specific decisions in business firms or other management units. It draws heavily from quantitative methods such as operations research and programming and from statistical methods such as regression analysis in the absence of certainty and perfect knowledge. A unif... | https://en.wikipedia.org/wiki?curid=9223 |
22,071 | Uncertainty in economics is an unknown prospect of gain or loss, whether quantifiable as risk or not. Without it, household behaviour would be unaffected by uncertain employment and income prospects, financial and capital markets would reduce to exchange of a single instrument in each market period, and there would be ... | https://en.wikipedia.org/wiki?curid=9223 |
22,072 | Game theory is a branch of applied mathematics that considers strategic interactions between agents, one kind of uncertainty. It provides a mathematical foundation of industrial organization, discussed above, to model different types of firm behaviour, for example in a solipsistic industry (few sellers), but equally ap... | https://en.wikipedia.org/wiki?curid=9223 |
22,073 | In this, it generalizes maximization approaches developed to analyse market actors such as in the supply and demand model and allows for incomplete information of actors. The field dates from the 1944 classic "Theory of Games and Economic Behavior" by John von Neumann and Oskar Morgenstern. It has significant applicati... | https://en.wikipedia.org/wiki?curid=9223 |
22,074 | Risk aversion may stimulate activity that in well-functioning markets smooths out risk and communicates information about risk, as in markets for insurance, commodity futures contracts, and financial instruments. Financial economics or simply finance describes the allocation of financial resources. It also analyses the... | https://en.wikipedia.org/wiki?curid=9223 |
22,075 | Some market organizations may give rise to inefficiencies associated with uncertainty. Based on George Akerlof's "Market for Lemons" article, the paradigm example is of a dodgy second-hand car market. Customers without knowledge of whether a car is a "lemon" depress its price below what a quality second-hand car would ... | https://en.wikipedia.org/wiki?curid=9223 |
22,076 | Both problems may raise insurance costs and reduce efficiency by driving otherwise willing transactors from the market ("incomplete markets"). Moreover, attempting to reduce one problem, say adverse selection by mandating insurance, may add to another, say moral hazard. Information economics, which studies such problem... | https://en.wikipedia.org/wiki?curid=9223 |
22,077 | The term "market failure" encompasses several problems which may undermine standard economic assumptions. Although economists categorize market failures differently, the following categories emerge in the main texts. | https://en.wikipedia.org/wiki?curid=9223 |
22,078 | Authors critical of economics tend to view the talk of "market failiures", as a term which is used when economic theories don't correspond with reality, making these theories and paradigms in which these terms are used unfalsifiable. | https://en.wikipedia.org/wiki?curid=9223 |
22,079 | Information asymmetries and incomplete markets may result in economic inefficiency but also a possibility of improving efficiency through market, legal, and regulatory remedies, as discussed above. | https://en.wikipedia.org/wiki?curid=9223 |
22,080 | Natural monopoly, or the overlapping concepts of "practical" and "technical" monopoly, is an extreme case of "failure of competition" as a restraint on producers. Extreme economies of scale are one possible cause. | https://en.wikipedia.org/wiki?curid=9223 |
22,081 | Public goods are goods which are under-supplied in a typical market. The defining features are that people can consume public goods without having to pay for them and that more than one person can consume the good at the same time. | https://en.wikipedia.org/wiki?curid=9223 |
22,082 | Externalities occur where there are significant social costs or benefits from production or consumption that are not reflected in market prices. For example, air pollution may generate a negative externality, and education may generate a positive externality (less crime, etc.). Governments often tax and otherwise restr... | https://en.wikipedia.org/wiki?curid=9223 |
22,083 | In many areas, some form of price stickiness is postulated to account for quantities, rather than prices, adjusting in the short run to changes on the demand side or the supply side. This includes standard analysis of the business cycle in macroeconomics. Analysis often revolves around causes of such price stickiness a... | https://en.wikipedia.org/wiki?curid=9223 |
22,084 | Some specialized fields of economics deal in market failure more than others. The economics of the public sector is one example. Much environmental economics concerns externalities or "public bads". | https://en.wikipedia.org/wiki?curid=9223 |
22,085 | Policy options include regulations that reflect cost-benefit analysis or market solutions that change incentives, such as emission fees or redefinition of property rights. | https://en.wikipedia.org/wiki?curid=9223 |
22,086 | Welfare economics uses microeconomics techniques to evaluate well-being from allocation of productive factors as to desirability and economic efficiency within an economy, often relative to competitive general equilibrium. It analyzes "social welfare", however measured, in terms of economic activities of the individual... | https://en.wikipedia.org/wiki?curid=9223 |
22,087 | Macroeconomics examines the economy as a whole to explain broad aggregates and their interactions "top down", that is, using a simplified form of general-equilibrium theory. Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and invest... | https://en.wikipedia.org/wiki?curid=9223 |
22,088 | Since at least the 1960s, macroeconomics has been characterized by further integration as to micro-based modelling of sectors, including rationality of players, efficient use of market information, and imperfect competition. This has addressed a long-standing concern about inconsistent developments of the same subject. | https://en.wikipedia.org/wiki?curid=9223 |
22,089 | Macroeconomic analysis also considers factors affecting the long-term level and growth of national income. Such factors include capital accumulation, technological change and labour force growth. | https://en.wikipedia.org/wiki?curid=9223 |
22,090 | "Growth economics" studies factors that explain economic growth – the increase in output "per capita" of a country over a long period of time. The same factors are used to explain differences in the "level" of output "per capita" "between" countries, in particular why some countries grow faster than others, and whether... | https://en.wikipedia.org/wiki?curid=9223 |
22,091 | Much-studied factors include the rate of investment, population growth, and technological change. These are represented in theoretical and empirical forms (as in the neoclassical and endogenous growth models) and in growth accounting. | https://en.wikipedia.org/wiki?curid=9223 |
22,092 | The economics of a depression were the spur for the creation of "macroeconomics" as a separate discipline. During the Great Depression of the 1930s, John Maynard Keynes authored a book entitled "The General Theory of Employment, Interest and Money" outlining the key theories of Keynesian economics. Keynes contended tha... | https://en.wikipedia.org/wiki?curid=9223 |
22,093 | He therefore advocated active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle. | https://en.wikipedia.org/wiki?curid=9223 |
22,094 | Thus, a central conclusion of Keynesian economics is that, in some situations, no strong automatic mechanism moves output and employment towards full employment levels. John Hicks' IS/LM model has been the most influential interpretation of "The General Theory". | https://en.wikipedia.org/wiki?curid=9223 |
22,095 | Over the years, understanding of the business cycle has branched into various research programmes, mostly related to or distinct from Keynesianism. The neoclassical synthesis refers to the reconciliation of Keynesian economics with neoclassical economics, stating that Keynesianism is correct in the short run but qualif... | https://en.wikipedia.org/wiki?curid=9223 |
22,096 | New classical macroeconomics, as distinct from the Keynesian view of the business cycle, posits market clearing with imperfect information. It includes Friedman's permanent income hypothesis on consumption and "rational expectations" theory, led by Robert Lucas, and real business cycle theory. | https://en.wikipedia.org/wiki?curid=9223 |
22,097 | In contrast, the new Keynesian approach retains the rational expectations assumption, however it assumes a variety of market failures. In particular, New Keynesians assume prices and wages are "sticky", which means they do not adjust instantaneously to changes in economic conditions. | https://en.wikipedia.org/wiki?curid=9223 |
22,098 | Thus, the new classicals assume that prices and wages adjust automatically to attain full employment, whereas the new Keynesians see full employment as being automatically achieved only in the long run, and hence government and central-bank policies are needed because the "long run" may be very long. | https://en.wikipedia.org/wiki?curid=9223 |
22,099 | The amount of unemployment in an economy is measured by the unemployment rate, the percentage of workers without jobs in the labour force. The labour force only includes workers actively looking for jobs. People who are retired, pursuing education, or discouraged from seeking work by a lack of job prospects are exclude... | https://en.wikipedia.org/wiki?curid=9223 |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.