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...mics)|goods]]. These functions are commonly used as examples in [[consumer theory]]. ...le commodity (<math>y</math>). <math>I</math> is the total income (wealth) of the consumer. ...

{{Short description|Concept in economics}} ...period, <math>K_{t+1}</math>, is <math>K_t + I_t - D_t</math>. The [[net (economics)|net]] increment to the capital stock is the difference between gross inves ...

{{Short description|Change of pricing based on costs}} ...(resulting in ratio below 1.0) or amplify them (ratio above 1.0).{{sfn|RBB Economics|2014|p=1}} ...

...location=London|pages=160|oclc=10348689}}</ref> It is part of the [[theory of consumption]] proposed by economist [[John Maynard Keynes]]. The hypothesis ...on of a population, rich people are expected to consume a lower proportion of their income than poor people. ...

{{Short description|Mathematical framework in economics}} ...ficial relationships over time. It is closely related to [[stable matching theory]]. ...

...M) by [[Richard Roll]]. It concerns methods to formally test the statement of the CAPM, the equation ...<math>R_m</math>. The market return is defined as the wealth-weighted sum of all investment returns in the economy. ...

...[[interest rate]]s, [[time preference]], and (intertemporal) [[elasticity of substitution]]. If derived from a basic [[Ramsey–Cass–Koopmans model]], the ...st rate]], and <math>\sigma > 0</math> is the (intertemporal) [[elasticity of substitution]].<ref>{{cite book |first1= Robert J. |last1= Barro |author-li ...

...es, R., & Zelenyuk, V. (2019). Measurement of Productivity and Efficiency: Theory and Practice. Cambridge: Cambridge University Press. doi:10.1017/9781139565 ...nd their properties are easily generalizable to include additional factors of production (like land, natural resources, entrepreneurship, etc.) ...

...volume=53 |issue=5 |pages=1109–1114 }}</ref> she tried to lower the degree of abstraction. Robinson presented her growth model in verbal terms. A mathema ...ook |first1=S. K. |last1=Mishra |first2=V. K. |last2=Puri |title=Economics of Development and Planning |isbn=978-81-8488-829-4 }}</ref> ...

{{Short description|Concept in financial economics}} ...ack|publisher=Oxford University Press|year=2010}}</ref> This definition is of fundamental importance in [[asset pricing]]. ...

...asticity Coefficient|elasticity coefficient]]. The elasticity is the ratio of the percentage change in the [[dependent variable]] to the percentage causa For an elasticity coefficient <math>r</math> (which can take on any real value), the function's general form is given by ...

...ndencia theorists as a theoretical economic justification for [[dependency theory]].<ref>Abdenur, Adriana [http://www.tc.columbia.edu/cice/Issues/04.02/42abd ...a, H. [https://www.jstor.org/pss/2234035 "North South Growth and the Terms of Trade"], ''The Economic Journal'', 1989, accessed June 24, 2011.</ref> ...

{{Short description|Monetary economics equation}} ...acts as a [[store of value]] and its movement depends on the desirability of holding cash. ...

...ges=53–74 |doi=10.1017/S0266267100005113 }}</ref> Two of the main areas in economics where hysteresis effects are invoked to explain economic phenomena are [[un ...as the [[natural rate of unemployment]] or non-accelerating inflation rate of unemployment ([[NAIRU]]).<ref name="BlanchardSummers1986">{{cite journal |f ...

...which satisfy the [[Karush–Kuhn–Tucker conditions|first-order conditions]] of the agent's problem. This makes the model mathematically more tractable (us ...lmström |title=Moral Hazard and Observability |journal=The Bell Journal of Economics |date=1979 |volume=10 |issue=1 |pages=74–91 |doi=10.2307/3003320 |url=https ...

...alue]] of current and future cash outflows cannot exceed the present value of currently available funds and future cash inflows. Typically this is expres ...utility|utilities discounted back to the present]] at the consumer's rate of [[time preference]], would be maximized with respect to the amounts ''x''<s ...

{{Short description|Concept in economics}} [[File:Isoelastic.svg|thumb|Isoelastic utility for different values of <math>\eta.</math> When <math>\eta>1</math> the curve approaches the horizo ...

...or the company is lower, the consumer has to pay more and a smaller amount of units are consumed.  ...resulting in a quantity of <math> \mathrm{Q} = 4</math> and a total profit of <math>\pi = 16</math>. ...

...pital]] [[asset]] with its [[Discounted cash flow|present discounted value of expected income]]. ...ly price”.<ref name="keynesDef">Keynes, John Maynard; ''The General Theory of Employment, Interest, and Money'' (1936), p 135.</ref> ...

...í |title=Real Wage Rigidities and the New Keynesian Model |journal=Journal of Money, Credit and Banking |volume=39 |issue=1 |pages=35–65 |year=2007 |doi= In a standard New Keynesian model consisting of a [[Nominal rigidity|Calvo price and sticky wages]] on the supply side and ...