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...
Distributive justice
Distributive justice concerns the nature of a socially just allocation of goods in a society. A society in which incidental inequalities in outcome do not arise would be considered a society guided by...
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.
Armchair theorizing
Armchair theorizing, armchair philosophizing, or armchair scholarship is an approach to providing new developments in a field that does not involve the collection of new information but, rather, a car...
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
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...
Essays in Positive Economics
Milton Friedman's book Essays in Positive Economics (1953) is a collection of earlier articles by the author with as its lead an original essay "The Methodology of Positive Economics," on which this a...
Least-cost planning methodology
Least-cost planning methodology (LCPM), also referred to as "least-cost planning" (LCP) is a relatively new technique used by economists for making rational decisions about investments in transportati...
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...
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
Experimental economics
Experimental economics is the application of experimental methods to study economic questions. Data collected in experiments are used to estimate effect size, test the validity of economic theories, a...
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...
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...
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...
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...
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...
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...
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 ...
On Social Freedom
On Social Freedom: or the Necessary Limits of Individual Freedom Arising Out of the Conditions of Our Social Life is an essay regarding individual and societal freedom initially thought to have been w...
On Social Freedom - 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...
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...
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...