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In his article on Economic de-growth vs. steady-state economy, Christian Kerschner has integrated the strategy of declining-state, or degrowth, with Herman Daly's concept of the steady-state economy to the effect that degrowth should be considered a path taken by the rich industrialized countries leading towards a globally equitable steady ...
The relative income hypothesis was developed by James Duesenberry in 1949. It consists of two separate consumption hypothesis. It consists of two separate consumption hypothesis. The first hypothesis states that an individual's attitude to consumption is dictated more by their income in relation to others than by an abstract standard of living .
Wagner's law, also known as the law of increasing [a] state activity, [2] is the observation that public expenditure increases as national income rises. [3] It is named after the German economist Adolph Wagner (1835–1917), who first observed the effect in his own country and then for other countries.
A hypothesis by economic historians Kenneth Sokoloff and Stanley Engerman suggested that factor endowments are a central determinant of structural inequality that impedes institutional development in some countries. Sokoloff and Engerman proposed that in the 19th century, countries such as Brazil and Cuba with rich factor endowments such as ...
Country-specific and year dummies relate to unusual economic events, which have significant effect on state budget balance, country-specific dummies for example to the German unification in 1990 and year dummies to macroeconomic shocks not fully reflected in the variables, like oil shocks in 1970s or 11 September terrorist attacks.
The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market. [1] Firms are key drivers in economics, providing goods and services in return for monetary payments and rewards.
RGR is a concept relevant in cases where the increase in a state variable over time is proportional to the value of that state variable at the beginning of a time period. In terms of differential equations , if S {\displaystyle S} is the current size, and d S d t {\displaystyle {\frac {dS}{dt}}} its growth rate, then relative growth rate is
In this case the rate is derived as follows: A trend was calculated for the resulting discounted price curve using the method of "least squares". The discount rate was then derived by seeking the goal of a trend of 1, i.e. flat. For housing this normalization rate was 6.06% considering the data from 1940 to 2010 relative to the year 1990.