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Armington Elasticity
An Armington elasticity is an economic parameter commonly used in models of consumer theory and international trade. It represents the elasticity of substitution between products of different countries, and is based on the assumption made by Paul Armington in 1969 that products traded internationally are differentiated by country of origin. The Armington assumption has become a standard assumption of international computable general equilibrium models. These models generate smaller and more realistic responses of trade to price changes than implied by models of homogeneous products. Yet no consensus on the magnitude of the elasticity exists. In different contexts, researchers tend to obtain substantially different estimates. A quantitative survey of 3,524 estimates of the Armington elasticity available in 2019 shows that – conditional on these differences and corrected for the publication bias In published academic research, publication bias occurs when the outcome of an e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity (economics)
In economics, elasticity measures the percentage change of one economic variable in response to a percentage change in another. If the price elasticity of the demand of something is -2, a 10% increase in price causes the demand quantity to fall by 20%. Introduction Elasticity is an important concept in neoclassical economic theory, and enables in the understanding of various economic concepts, such as the incidence of indirect taxation, marginal concepts relating to the theory of the firm, distribution of wealth, and different types of goods relating to the theory of consumer choice. An understanding of elasticity is also important when discussing welfare distribution, in particular consumer surplus, producer surplus, or government surplus. Elasticity is present throughout many economic theories, with the concept of elasticity appearing in several main indicators. These include price elasticity of demand, price elasticity of supply, income elasticity of demand, elastici ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Models
In economics, a model is a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified, often mathematical, framework designed to illustrate complex processes. Frequently, economic models posit structural parameters. A model may have various exogenous variables, and those variables may change to create various responses by economic variables. Methodological uses of models include investigation, theorizing, and fitting theories to the world. Overview In general terms, economic models have two functions: first as a simplification of and abstraction from observed data, and second as a means of selection of data based on a paradigm of econometric study. ''Simplification'' is particularly important for economics given the enormous complexity of economic processes. This complexity can be attributed to the diversity of factors that determine economic activity; ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Theory
The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their preferences subject to limitations on their expenditures, by maximizing utility subject to a consumer budget constraint. Factors influencing consumers' evaluation of the utility of goods: income level, cultural factors, product information and physio-psychological factors. Consumption is separated from production, logically, because two different economic agents are involved. In the first case consumption is by the primary individual, individual tastes or preferences determine the amount of pleasure people derive from the goods and services they consume.; in the second case, a producer might make something that he would not consume himself. Therefore, different motivations and abilities are involved. The models that make up consumer theory ar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trade
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services, i.e. trading things without the use of money. Modern traders generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and letter of credit, paper money, and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade. In one modern view, trade exists due to specialization and the division of labour, a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use their output in trades for other products ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Elasticity Of Substitution
Elasticity of substitution is the ratio of percentage change in capital-labour ratio with the percentage change in Marginal Rate of Technical Substitution. In a competitive market, it measures the percentage change in the two inputs used in response to a percentage change in their prices.Bergstrom, Ted (2015)''Lecture Notes on Elasticity of Substitution'' p. 5. Viewed June 17, 2016. It gives a measure of the curvature of an isoquant, and thus, the substitutability between inputs (or goods), i.e. how easy it is to substitute one input (or good) for the other. History of the concept John Hicks introduced the concept in 1932. Joan Robinson independently discovered it in 1933 using a mathematical formulation that was equivalent to Hicks's, though that was not implemented at the time.Chirinko, Robert (2006)''Sigma: The Long and Short of It'' '' Journal of Macroeconomics. '' 2: 671-86. Definition The general definition of the elasticity of X with respect to Y is E^X_Y = \frac, which redu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Paul Armington
Paul may refer to: *Paul (given name), a given name (includes a list of people with that name) *Paul (surname), a list of people People Christianity *Paul the Apostle (AD c.5–c.64/65), also known as Saul of Tarsus or Saint Paul, early Christian missionary and writer *Pope Paul (other), multiple Popes of the Roman Catholic Church *Saint Paul (other), multiple other people and locations named "Saint Paul" Roman and Byzantine empire *Lucius Aemilius Paullus Macedonicus (c. 229 BC – 160 BC), Roman general *Julius Paulus Prudentissimus (), Roman jurist *Paulus Catena (died 362), Roman notary *Paulus Alexandrinus (4th century), Hellenistic astrologer *Paul of Aegina or Paulus Aegineta (625–690), Greek surgeon Royals *Paul I of Russia (1754–1801), Tsar of Russia *Paul of Greece (1901–1964), King of Greece Other people *Paul the Deacon or Paulus Diaconus (c. 720 – c. 799), Italian Benedictine monk *Paul (father of Maurice), the father of Maurice, Byzan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Computable General Equilibrium
Computable general equilibrium (CGE) models are a class of economic models that use actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. CGE models are also referred to as AGE (applied general equilibrium) models. Overview A CGE model consists of equations describing model variables and a database (usually very detailed) consistent with these model equations. The equations tend to be neoclassical in spirit, often assuming cost-minimizing behaviour by producers, average-cost pricing, and household demands based on optimizing behaviour. However, most CGE models conform only loosely to the theoretical general equilibrium paradigm. For example, they may allow for: # non-market clearing, especially for labour (unemployment) or for commodities (inventories) # imperfect competition (e.g., monopoly pricing) # demands not influenced by price (e.g., government demands) A CGE model database consists of: # tables of transacti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Publication Bias
In published academic research, publication bias occurs when the outcome of an experiment or research study biases the decision to publish or otherwise distribute it. Publishing only results that show a significant finding disturbs the balance of findings in favor of positive results. The study of publication bias is an important topic in metascience. Despite similar quality of execution and design, papers with statistically significant results are three times more likely to be published than those with null results. This unduly motivates researchers to manipulate their practices to ensure statistically significant results, such as by data dredging. Many factors contribute to publication bias. For instance, once a scientific finding is well established, it may become newsworthy to publish reliable papers that fail to reject the null hypothesis. Most commonly, investigators simply decline to submit results, leading to non-response bias. Investigators may also assume they made a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Meta-regression
Meta-regression is defined to be a meta-analysis that uses regression analysis to combine, compare, and synthesize research findings from multiple studies while adjusting for the effects of available covariates on a response variable. A meta-regression analysis aims to reconcile conflicting studies or corroborate consistent ones; a meta-regression analysis is therefore characterized by the collated studies and their corresponding data sets—whether the response variable is study-level (or equivalently ''aggregate'') data or individual participant data (or individual patient data in medicine). A data set is ''aggregate'' when it consists of summary statistics such as the sample mean, effect size, or odds ratio. On the other hand, individual participant data are in a sense ''raw'' in that all observations are reported with no abridgment and therefore no information loss. Aggregate data are easily compiled through internet search engines and therefore not expensive. However, individu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
