You are looking at all articles with the topic "Economics". We found 117 matches.

Hint: To view all topics, click here. Too see the most popular topics, click here instead.

🔗 Economics 🔗 Statistics

The Herfindahl index (also known as Herfindahl–Hirschman Index, HHI, or sometimes HHI-score) is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. Named after economists Orris C. Herfindahl and Albert O. Hirschman, it is an economic concept widely applied in competition law, antitrust and also technology management. It is defined as the sum of the squares of the market shares of the firms within the industry (sometimes limited to the 50 largest firms), where the market shares are expressed as fractions. The result is proportional to the average market share, weighted by market share. As such, it can range from 0 to 1.0, moving from a huge number of very small firms to a single monopolistic producer. Increases in the Herfindahl index generally indicate a decrease in competition and an increase of market power, whereas decreases indicate the opposite. Alternatively, if whole percentages are used, the index ranges from 0 to 10,000 "points". For example, an index of .25 is the same as 2,500 points.

The major benefit of the Herfindahl index in relationship to such measures as the concentration ratio is that it gives more weight to larger firms.

The measure is essentially equivalent to the Simpson diversity index, which is a diversity index used in ecology; the inverse participation ratio (IPR) in physics; and the effective number of parties index in politics.

🔗 Economics 🔗 Politics 🔗 Energy

The technocracy movement is a social and ideological movement which arose in the early 20th century. Technocracy was popular in the United States and Canada for a brief period in the early 1930s, before it was overshadowed by other proposals for dealing with the crisis of the Great Depression. The technocracy movement proposed replacing politicians and businesspeople with scientists and engineers who had the technical expertise to manage the economy.

The movement was committed to abstaining from all revolutionary and political activities. It gained strength in the 1930s but in 1940, due to an alleged initial opposition to the Second World War, was banned in Canada. The ban was lifted in 1943 when it was apparent that 'Technocracy Inc. was committed to the war effort, proposing a program of total conscription.' The movement continued to expand during the remainder of the war and new sections were formed in Ontario and the Maritime Provinces.

In the post-war years, perhaps due to the growing distrust of socialism in the cold war, membership and interest in technocracy decreased. Though now relatively insignificant, the Technocracy movement survives into the present day, and as of 2013, was continuing to publish a newsletter, maintain a website, and hold member meetings. Smaller groups included the Technical Alliance, The New Machine and the Utopian Society of America, though Bellamy had the most success due to his nationalistic stances, and Veblen's rhetoric, removing the current pricing system and his blueprint for a national directorate to reorganize all produced goods and supply, and ultimately to radically increase all industrial output.

🔗 Mathematics 🔗 Economics 🔗 Statistics 🔗 Sociology 🔗 Globalization

In economics, the Gini coefficient ( JEE-nee), sometimes called the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and is the most commonly used measurement of inequality. It was developed by the Italian statistician and sociologist Corrado Gini and published in his 1912 paper Variability and Mutability (Italian: Variabilità e mutabilità).

The Gini coefficient measures the inequality among values of a frequency distribution (for example, levels of income). A Gini coefficient of zero expresses perfect equality, where all values are the same (for example, where everyone has the same income). A Gini coefficient of one (or 100%) expresses maximal inequality among values (e.g., for a large number of people, where only one person has all the income or consumption, and all others have none, the Gini coefficient will be very nearly one). For larger groups, values close to one are very unlikely in practice. Given the normalization of both the cumulative population and the cumulative share of income used to calculate the Gini coefficient, the measure is not overly sensitive to the specifics of the income distribution, but rather only on how incomes vary relative to the other members of a population. The exception to this is in the redistribution of income resulting in a minimum income for all people. When the population is sorted, if their income distribution were to approximate a well-known function, then some representative values could be calculated.

The Gini coefficient was proposed by Gini as a measure of inequality of income or wealth. For OECD countries, in the late 20th century, considering the effect of taxes and transfer payments, the income Gini coefficient ranged between 0.24 and 0.49, with Slovenia being the lowest and Mexico the highest. African countries had the highest pre-tax Gini coefficients in 2008–2009, with South Africa the world's highest, variously estimated to be 0.63 to 0.7, although this figure drops to 0.52 after social assistance is taken into account, and drops again to 0.47 after taxation. The global income Gini coefficient in 2005 has been estimated to be between 0.61 and 0.68 by various sources.

There are some issues in interpreting a Gini coefficient. The same value may result from many different distribution curves. The demographic structure should be taken into account. Countries with an aging population, or with a baby boom, experience an increasing pre-tax Gini coefficient even if real income distribution for working adults remains constant. Scholars have devised over a dozen variants of the Gini coefficient.

🔗 Computing 🔗 Economics 🔗 Computing/Early computers

The MONIAC (Monetary National Income Analogue Computer) also known as the Phillips Hydraulic Computer and the Financephalograph, was created in 1949 by the New Zealand economist Bill Phillips (William Phillips) to model the national economic processes of the United Kingdom, while Phillips was a student at the London School of Economics (LSE). The MONIAC was an analogue computer which used fluidic logic to model the workings of an economy. The MONIAC name may have been suggested by an association of money and ENIAC, an early electronic digital computer.

🔗 Economics

"Assume a can opener" is a catchphrase used to mock economists and other theorists who base their conclusions on unjustified or oversimplified assumptions.

The phrase derives from a joke which dates to at least 1970 and possibly originated with British economists. The first book mentioning it is likely Economics as a Science (1970) by Kenneth E. Boulding:

There is a story that has been going around about a physicist, a chemist, and an economist who were stranded on a desert island with no implements and a can of food. The physicist and the chemist each devised an ingenious mechanism for getting the can open; the economist merely said, "Assume we have a can opener"!

The phrase was popularized in a 1981 book and has become sufficiently well known that many writers on economic topics use it as a catchphrase without further explanation.

🔗 Economics 🔗 Basic Income 🔗 Taxation

In economics, a negative income tax (NIT) is a welfare system within an income tax where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.

Such a system has been discussed by economists but never fully implemented. According to surveys however, the consensus view among economists is that the "government should restructure the welfare system along the lines" of one. It was described by British politician Juliet Rhys-Williams in the 1940s and later by American free-market economist Milton Friedman.

Negative income taxes can implement a basic income or supplement a guaranteed minimum income system.

In a negative income tax system, people earning a certain income level would owe no taxes; those earning more than that would pay a proportion of their income above that level; and those below that level would receive a payment of a proportion of their shortfall, which is the amount their income falls below that level.

🔗 Economics 🔗 Transport

The Downs–Thomson paradox (named after Anthony Downs and John Michael Thomson), also known as the Pigou–Knight–Downs paradox (after Arthur Cecil Pigou and Frank Knight), states that the equilibrium speed of car traffic on a road network is determined by the average door-to-door speed of equivalent journeys taken by public transport.

It is a paradox in that improvements in the road network will not reduce traffic congestion. Improvements in the road network can make congestion worse if the improvements make public transport more inconvenient or if it shifts investment, causing disinvestment in the public transport system.

🔗 Economics 🔗 Numismatics

In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation.

The law was named in 1860 by Henry Dunning Macleod, after Sir Thomas Gresham (1519–1579), who was an English financier during the Tudor dynasty. However, the concept itself had been previously expressed by others, including by Aristophanes in his play The Frogs, which dates from around the end of the 5th century BC, in the 14th century by Nicole Oresme c. 1350, in his treatise On the Origin, Nature, Law, and Alterations of Money, and by jurist and historian Al-Maqrizi (1364–1442) in the Mamluk Empire; and in 1519 by Nicolaus Copernicus in a treatise called Monetae cudendae ratio For this reason, it is occasionally known as the Gresham–Copernicus' law.

🔗 Economics 🔗 European history

The Price Revolution, sometimes known as the Spanish Price Revolution, was a series of economic events that occurred between the second half of the 15th century and the first half of the 17th century, and most specifically linked to the high rate of inflation that occurred during this period across Western Europe. Prices rose on average roughly sixfold over 150 years. This level of inflation amounts to 1–1.5% per year, a relatively low inflation rate for modern-day standards, but rather high given the monetary policy in place in the 16th century.

Generally it is thought that this high inflation was caused by the large influx of gold and silver from the Spanish treasure fleet from the New World, including Mexico, Peru, and the rest of the Spanish Empire.

Specie flowed through Spain, increasing Spanish prices, and then spread over Western Europe as a result of Spanish balance of payments deficit. This enlarged the monetary supply and price levels of many European countries. Combined with this influx of gold and silver, population growth and urbanization perpetuated the price revolution. According to this theory, too many people with too much money chased too few goods.

🔗 Finance & Investment 🔗 Economics

Financialization (or financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to present, in which debt-to-equity ratios increased and financial services accounted for an increasing share of national income relative to other sectors.

Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments. Financialization may permit real goods, services, and risks to be readily exchangeable for currency, and thus make it easier for people to rationalize their assets and income flows.