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In statistics, a proxy or proxy variable is a variable that is not in itself directly relevant, but that serves in place of an unobservable or immeasurable variable. [1] In order for a variable to be a good proxy, it must have a close correlation, not necessarily linear, with the variable of interest. This correlation might be either positive ...
Essentially, the monetisation principle assumes that price is a proxy for value. While prices represent exchange value – the market price at which demand equals supply – they do not completely represent all the value to either the seller or the consumer. In other words, they do not capture economic surplus (consumer
The European System of Accounts (ESA95) explicitly includes produced intangible assets (e.g. mineral exploration, computer software, copyright protected entertainment, literary and artistics originals) within the definition of fixed assets. The range of fixed assets included in statistical measurement is defined by the purpose in using them.
Procyclical has a different meaning in the context of economic policy. In this context, it refers to any aspect of economic policy that could magnify economic or financial fluctuations. Of course, since the effects of particular policies are often uncertain or disputed, a policy will be often procyclical, countercyclical or acyclical according ...
It may be used in macro-economics as a proxy for total pre-tax profit income, although entrepreneurial income may provide a better measure of business profits. According to the 2008 SNA, it is the measure of the surplus accruing from production before deducting property income, e.g., land rent and interest .
The New York Stock Exchange on Wall Street, the world's largest stock exchange in terms of total market capitalization of its listed companies, as of 2010 [1]. Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
In some economics textbooks, the supply-demand equilibrium in the markets for money and reserves is represented by a simple so-called money multiplier relationship between the monetary base of the central bank and the resulting money supply including commercial bank deposits. This is a short-hand simplification which disregards several other ...
An extremely important definition of income is Haig–Simons income, which defines income as Consumption + Change in net worth and is widely used in economics. [ 2 ] For households and individuals in the United States , income is defined by tax law as a sum that includes any wage , salary , profit , interest payment, rent , or other form of ...