Arthur Cecil Pigou (1877-1959)

Arthur Cecil Pigou (/ˈpiːɡuː/; 18 November 1877 – 7 March 1959) was an English economist. As a teacher and builder of the School of Economics at the University of Cambridge, he trained and influenced many Cambridge economists who went on to take chairs of economics around the world. His work covered various fields of

1 Comments

Arthur B. Laffer (1941- )

Arthur Laffer received a B.A. in economics from Yale University in 1963. He received a MBA and a Ph.D. in economics from Stanford University in 1965 and 1971 respectively. Arthur Laffer’s economic acumen and influence in triggering a world-wide tax-cutting movement in the 1980s have earned him the distinction in many publications as ‘The

1 Comments

Arthur M. Okun (1928-1980)

Arthur Okun is known mainly for Okun’s Law, which describes a linear relation between percentage changes in unemployment and percent changes in gross national product. It states that for every percentage point that the unemployment rate falls, real GNP rises by 3 percent. Okun’s Law was based on data from World War II to

1 Comments

Asymmetrical information

Asymmetrical information exists when one side of the market possesses information lacked by others in that market. Employers in labor markets often posses more information about the current/future status of their industry than trade unions or workers, and can use this as a basis of negotiation. However, it can be seen as an imperfection

3 Comments

Average cost pricing (1939)

Research by ROBERT ERNEST HALL (1943- ) and CHARLES J. HITCH showed that, whilst prices represent the average cost of production and distribution, firms typically set their pricing policies by determining the average cost of production, and adding a profit margin which does not appear to vary with market demand. The average hourly wage

1 Comments

Balanced budget multiplier (1940S)

Axiomatic theories relating to consumer behavior and rationality, and are an essential part of consumer demand theory and indifference curve analysis. A balanced budget (equilibrium)(particularly that of a government) is a budget in which revenues are equal to expenditures. Thus, neither a budget deficit nor a budget surplus exists (the accounts “balance”). More generally, it is a budget that has no budget deficit,

1 Comments

Behavioral theory of the firm

The behavioral theory of the firm first appeared in the 1963 book A Behavioral Theory of the Firm by Richard M. Cyert and James G. March. The work on the behavioral theory started in 1952 when March, a political scientist, joined Carnegie Mellon University, where Cyert was an economist. A behavioral model of rational choice by Herbert A. Simon paved the

Benefit approach (17TH CENTURY)

Benefit approach principle is a traditional principle of taxation expounded by English philosophers Thomas Hobbes (1588-1679) and John Locke (1632-1704), and by Dutch jurist Hugo Grotius (1583-1645). Taxation is levied broadly in realtion to the benefits that people receive in public services. All people pay for the government-provided goods and services that they individually consume. All government services are privatized

Bernoulli’s hypothesis (18TH CENTURY)

Proposed by Swiss mathematician Daniel Bernoulli (1700-1782), Bernoulli’s hypothesis suggests added dimensions to the evaluation of risk. Acceptance of a risk depends not only on the nominal value of what may be lost but also on the intrinsic value, or utility, of it to the person accepting the risk. In economics, game theory, and decision theory,

3 Comments

Bertil G. Ohlin (1899-1979)

Bertil Gotthard Ohlin (Swedish: [ˈbæ̌ʈːɪl ʊˈliːn]) (23 April 1899 – 3 August 1979) was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. He was also leader of the People’s Party, a social-liberal party which at the time was the largest party

2 Comments

Bertrand duopoly model (1883)

Developed by French mathematician Joseph Bertrand (1822-1903), Bertrand duopoly model is a variant of the standard duopoly (a market characterized by two suppliers). A supplier in the Bertrand duopoly assumes his competitor will not change prices in response to his price cuts. If each follows this logic, an equilibrium will be established and neither firm will benefit from

2 Comments

Bilateral monopoly

A market characterized by a single seller and a single buyer, otherwise known as a monopoly and a monopsony. Examples of a bilateral monopoly frequently occur in the public sector where a government education employer negotiates with a single teachers’ union on pay and conditions. Bilateral monopoly situations are typically analyzed using the theory of Nash bargaining

2 Comments

Bimetallism (18TH CENTURY)

A system operating in the USA and in the Latin Union (1865-1873) in Europe during the 19th century, bimetallism used two metals (most commonly gold and silver) to serve as an international standard of value and means of payment. Bimetallism[a] is a monetary standard in which the value of the monetary unit is defined

1 Comments

Bionomics 1990S

Modern scientific process includes various kinds of researches (in ecology, medicine, biotechnology, biology, economics), which are referred to as bionomics. As an economic theory, bionomics is the application of models and modeling methods from biology to the field of economics. One of the most active developers of this discipline, Michael Rothschild, gives his own

5 Comments

Bounded rationality (1980S)

Bounded rationality is the idea that rationality is limited, when individuals make decisions, by the tractability of the decision problem, the cognitive limitations of the mind, and the time available to make the decision. Decision-makers, in this view, act as satisficers, seeking a satisfactory solution rather than an optimal one. Herbert A. Simon proposed

1 Comments

Bureaucracy

Bureaucracy (/bjʊəˈrɒkrəsi/) refers to both a body of non-elected government officials and an administrative policy-making group. Historically,[when?] a bureaucracy was a government administration managed by departments staffed with non-elected officials. Today, bureaucracy is the administrative system governing any large institution, whether publicly owned or privately owned. The public administration in many countries is an

2 Comments

Business cycle

The business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth

1 Comments

Cambridge capital controversies (1930S- )

Cambridge capital controversies refer to the debate between British and American economists concerning the neoclassical approach to economics. They were based at Cambridge University (England) and the Massachusetts Institute of Technology (Cambridge, USA), respectively. The Modern School, particularly influenced by Alfred Marshall (1842-1924) and headed by the English economists Arthur Cecil Pigou (1877-1959) and John Maynard Keynes (1882-1946), refuted the

1 Comments

Capital asset pricing model (1960S)

Developed by American economist James Tobin (1918-2002) among others, capital asset pricing model (CAPM) studies the relationship between risk and return by suggesting that asset prices will adjust to ensure that the return on an asset compensates for the risk undertaken by the investor, when held with a perfectly diversified portfolio. Capital asset pricing model has

1 Comments

Capital logic (20TH CENTURY)

Capital logic is a theory within Marxism.Capital Logic is a powerful graphical and design-management environment for authoring both logical connectivity designs (signals), and physical wiring designs (wires, splices, multicores, etc). Capital Logic may be used to design both sub-systems and to accomplish interactive system integration, i.e. the merging of multiple sub-systems into the physical

1 Comments