Sonnenschein–Mantel–Debreu theoremThe Sonnenschein–Mantel–Debreu theorem is an important result in general equilibriumeconomics, proved by Gérard Debreu, , and Hugo F. Sonnenschein in the 1970s. It states that the excess demand curve for an exchange economy populated with utility-maximizingrational agents can take the shape of any function that is continuous, has homogeneity degree zero, and is in accordance with Walras's law.
Representative agentEconomists use the term representative agent to refer to the typical decision-maker of a certain type (for example, the typical consumer, or the typical firm). More technically, an economic model is said to have a representative agent if all agents of the same type are identical.
Heterogeneity in economicsIn economic theory and econometrics, the term heterogeneity refers to differences across the units being studied.Agent (economics)In economics, an agent is an actor (more specifically, a decision maker) in a model of some aspect of the economy. Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem. For example, buyers (consumers) and sellers (producers) are two common types of agents in partial equilibrium models of a single market.
EconomicsEconomics () is a social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as the basic elements of economies, including individual agents and markets, their interactions, and the outcomes of those interactions. Individual agents may include households, firms, buyers, and sellers.
Production functionGraph of total, average, and marginal productIn economics, a production function gives the technological relation between quantities of physical inputs and quantities of output of goods. The production function is one of the key concepts of mainstreamneoclassical theories, used to define marginal product and to distinguish allocative efficiency, a key focus of economics.
Scalar (mathematics)In mathematics, more specifically in linear algebra, a scalar is an element of a field which is used to define a vector space through the operation of scalar multiplication: a vector (denoted v) multiplied by a scalar (denoted a) produces another vector (av). Real numbers and complex numbers may be used as scalars in real and complex vector spaces, respectively.
Vector (mathematics and physics)In mathematics and physics, a vector is a generalization of a single number. It may denote a vector quantity, i.e., physical quantity that cannot be expressed by a single scalar quantity. The term may also be used to refer to elements of vector spaces, that can be added together and multiplied ("scaled") by scalars. In some contexts, vectors are tuples, which are finite sequences (of numbers or other objects) of a fixed length.
Real numberIn mathematics, a real number is a number that can be used to measure a continuous one-dimensionalquantity such as a length, duration or temperature. Here, continuous means that pairs of values can have arbitrarily small differences. Every real number can be almost uniquely represented by an infinite decimal expansion.
MeasurementMeasurement is the quantification of attributes of an object or event, which can be used to compare with other objects or events. In other words, measurement is a process of determining how large or small a physical quantity is as compared to a basic reference quantity of the same kind. The scope and application of measurement are dependent on the context and discipline.
MicroeconomicsMicroeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the economy as a whole, which is studied in macroeconomics.
Empirical evidenceEmpirical evidence is evidence obtained through sense experience or experimental procedure. It is of central importance to the sciences and plays a role in various other fields, like epistemology and law. The terms evidence and empirical are used variably across different fields according to their methods and paradigms. In epistemology, evidence is what justifiesbeliefs or what determines whether holding a certain belief is rational.*As an Amazon Associate I earn from qualifying purchases.