Search results
Results from the WOW.Com Content Network
The aggregation problem is the difficult problem of finding a valid way to treat an empirical or theoretical aggregate as if it reacted like a less-aggregated measure, say, about behavior of an individual agent as described in general microeconomic theory [1] (see representative agent and heterogeneity in economics).
Illustration of the partial payout of Sum Insured against probability of occurrence. Condition of average (also called underinsurance [1] in the U.S., or principle of average, [2] subject to average, [3] or pro rata condition of average [4] in Commonwealth countries) is the insurance term used when calculating a payout against a claim where the policy undervalues the sum insured.
Figure 3: Profit maximising condition for the firm in the Robinson Crusoe economy Assume that when the firm produces C amount of total coconuts, Π {\displaystyle \Pi } represents its profit level. Also assume that when the wage rate at which the firm employs labour is w , L is the amount of labour that will be employed.
In economics, aggregate behavior refers to economy-wide sums of individual behavior. It involves relationships between economic aggregates such as national income, government expenditure, and aggregate demand. For example, the consumption function is a relationship between aggregate demand for consumption and aggregate disposable income.
An aggregate pattern is an important statistical concept in many fields that rely on statistics to predict the behavior of large groups, based on the tendencies of subgroups to consistently behave in a certain way. It is particularly useful in sociology, economics, psychology, and criminology.
Aggregate supply/demand graph. The AD–AS or aggregate demand–aggregate supply model (also known as the aggregate supply–aggregate demand or AS–AD model) is a widely used macroeconomic model that explains short-run and long-run economic changes through the relationship of aggregate demand (AD) and aggregate supply (AS) in a diagram.
Aggregate data are also used for medical and educational purposes. Aggregate data is widely used, but it also has some limitations, including drawing inaccurate inferences and false conclusions which is also termed ‘ecological fallacy’. [3] ‘Ecological fallacy’ means that it is invalid for users to draw conclusions on the ecological ...
In mathematical economics, the Arrow–Debreu model is a theoretical general equilibrium model. It posits that under certain economic assumptions (convex preferences, perfect competition, and demand independence), there must be a set of prices such that aggregate supplies will equal aggregate demands for every commodity in the economy.