Economic methodology
Economic methodology is the study of methods, especially the scientific method, in relation to economics, including principles underlying economic reasoning. In contemporary English, 'methodology'...
Rational choice theory
Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. Rationality, interpreted as "w...
John Stuart Mill Institute
The John Stuart Mill Institute is a non-governmental, Heidelberg-based research institute founded in 2009 and named after John Stuart Mill, an influential 19th-century English philosopher and politici...
Causation in economics
Causation in economics has a long history with Adam Smith explicitly acknowledging its importance via his (1776) An Inquiry into the Nature and Causes of the Wealth of Nations and David Hume (1739, 1...
Wicksellian Differential
The Wicksellian Differential is derived from Knut Wicksell's theory of interest and is an approximation of the extent of disequilibrium in an economy.Formula: Wicksellian Differential = Natural Rate o...
Uncertainty modeling
Uncertainty Modeling is an eclectic research area bringing together economics and engineering. It differs from stochastic modeling.
Confrontation analysis
Confrontation analysis (also known as dilemma analysis) is an operational analysis technique used to structure, understand and think through multi-party interactions such as negotiations. It is the un...
Confrontation analysis - Wikipedia
Grinold and Kroner Model
The Grinold and Kroner Model is used to calculate expected returns for a stock, stock index or the market as whole. It is a part of a larger framework for making forecasts about market expectations.Th...
Stylized fact
In social sciences, especially economics, a stylized fact is a simplified presentation of an empirical finding. A stylized fact is often a broad generalization that summarizes some complicated statist...
Lagrangian
The Lagrangian, L, of a dynamical system is a mathematical function that summarizes the dynamics of the system. For a simple mechanical system, it is the value given by the kinetic energy of the parti...
Homo economicus
In economics, homo economicus, or economic human, is the concept in many economic theories of humans as rational and narrowly self-interested actors who have the ability to make judgments toward their...
Statistics
Statistics is the study of the collection, analysis, interpretation, presentation, and organization of data. In applying statistics to, e.g., a scientific, industrial, or societal problem, it is conve...
Recursive economics
Recursive economics is a branch of modern economics based on a paradigm of individuals making a series of two-period optimization decisions over time.
The neoclassical model assumes a one-period u...
An Essay on the Nature and Significance of Economic Science
Lionel Robbins' Essay (1932, 1935, 2nd ed., 158 pp.) sought to define more precisely economics as a science and to derive substantive implications. Analysis is relative to "accepted solutions of part...
Kakutani fixed-point theorem
In mathematical analysis, the Kakutani fixed-point theorem is a fixed-point theorem for set-valued functions. It provides sufficient conditions for a set-valued function defined on a convex, compact s...
Kakutani fixed-point theorem - Wikipedia
Social Choice and Individual Values
Kenneth Arrow's monograph Social Choice and Individual Values (1951, 2nd ed., 1963) and a theorem within it created modern social choice theory, a rigorous melding of social ethics and voting theory ...
Methodological individualism
Methodological individualism is the requirement that causal accounts of social phenomena explain how they result from the motivations and actions of individual agents, at least in principle.
In ne...
Principles of Political Economy
Principles of Political Economy (1848) by John Stuart Mill was one of the most important economics or political economy textbook of the mid nineteenth century. It was revised until its seventh edition...
Principles of Political Economy - Wikipedia
Homo reciprocans
Homo reciprocans, or reciprocal human, is the concept in some economic theories of humans as cooperative actors who are motivated by improving their environment. This concept stands in contrast to the...
Mathematical economics
Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. By convention, the applied methods refer to those beyond simple geometry, su...
Mathematical economics - Wikipedia
Opportunity cost of capital
The opportunity cost of capital is the expected rate of return forgone by bypassing other potential investment activities (the lost opportunity) in choosing a particular use for capital. It is usually...
Marketplace of ideas
The "marketplace of ideas" is a rationale for freedom of expression based on an analogy to the economic concept of a free market. The "marketplace of ideas" belief holds that the truth will emerge fro...
Pluralism in economics
The pluralism in economics movement is a campaign to 'enrich teaching and research and reinvigorate the discipline... [and bring] economics back into the service of society'. Dalen writes that economi...
Utilitarianism (book)
John Stuart Mill's book Utilitarianism is a philosophical defence of utilitarianism in ethics. The essay first appeared as a series of three articles published in Fraser's Magazine in 1861; the articl...
Ecological rationality
Ecological rationality is a particular account of practical rationality, which specifies the norms of rational action – what one ought to do in order to be rational. The presently dominant account of ...
Trade-off talking rational economic person
Trade-off talking rational economic person (acronym: T.O.T.R.E.P.) is one term, among various, used to denote, in the field of choice analysis, the rational, human agent of economic decisions.
The...
Decision theory
Decision theory or theory of choice in economics, psychology, philosophy, mathematics, computer science, and statistics is concerned with identifying the values, uncertainties and other issues relevan...
Value and Capital
Value and Capital is a book by the British economist John Richard Hicks, published in 1939. It is considered a classic exposition of microeconomic theory. Central results include:
The book has 19...
Economic data
Economic data or economic statistics may refer to data (quantitative measures) describing an actual economy, past or present. These are typically found in time-series form, that is, covering more than...