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In economics, nonmarket forces (or non-market forces) are those acting on economic factors from outside a market system. They include organizing and correcting factors that provide order to markets and other societal institutions and organizations, as well as forces utilized by price systems other than the free price system .
Economic motivations include the ability to evade taxes, the freedom to circumvent regulations and licensing requirements, and the capacity to maintain certain government benefits. [27] A study of informal workers in Costa Rica illustrated other economic reasons for staying in the informal sector, as well as non-economic factors.
The simplest example is the family household. Other examples include barter economies, gift economies and primitive communism. Even in a monetary economy, there are a significant number of nonmonetary transactions. Examples include household labor, care giving, civic activity, or friends working to help one another.
An economic impact analysis only covers specific types of economic activity. Some social impacts that affect a region's quality of life, such as safety and pollution, may be analyzed as part of a social impact assessment, but not an economic impact analysis, even if the economic value of those factors could be quantified. [2]
The following examples are sometimes cited as barriers to entry, but don't fit all the commonly cited definitions of a barrier to entry. Many of these fit the definition of antitrust barriers to entry or ancillary economic barriers to entry.
There are also non-economic factors to be considered, like color, style, public image, etc.; such factors are termed attributes. [5] Costs as well as revenues are considered, for each alternative, for an analysis period that is either a fixed number of years or the estimated life of the project.
According to Kaldor, “The purpose of a theory of economic growth is to show the nature of non-economic variables which ultimately determine the rate at which the general level of production of the economy is growing, and thereby contribute to an understanding of the question of why some societies grow so much faster than others.” [2] [1]
In an economic model, an exogenous variable is one whose measure is determined outside the model and is imposed on the model, and an exogenous change is a change in an exogenous variable. [ 1 ] : p. 8 [ 2 ] : p. 202 [ 3 ] : p. 8 In contrast, an endogenous variable is a variable whose measure is determined by the model.