The first and second theorems of welfare economics are fundamental concepts in the field of economics, particularly in the study of market efficiency and the allocation of resources. These theorems provide insights into the conditions under which competitive markets can lead to an efficient allocation...
The fallacy of composition is a logical error that occurs when one assumes that what is true for an individual or a part is also true for the whole or the collective. In economics, the fallacy of composition refers to the mistaken belief that what...
The Triffin Dilemma, also known as the Triffin paradox, is an economic theory that highlights the inherent conflict between the domestic and international roles of a country's currency, particularly in the context of a global reserve currency. The dilemma was first articulated by the Belgian-American...
Consumer behavior under risk and uncertainty refers to how individuals make decisions when they are faced with situations where the outcome is uncertain or involves a certain level of risk. This can include purchasing decisions, investment choices, or any behavior that involves a trade-off between...
Bilateral Trade Agreements and Their Implications Bilateral trade agreement and their implications A bilateral trade agreement, also known as a preferential trade agreement or a free trade agreement (FTA), is a pact between two countries or regions that aims to reduce or eliminate trade barriers such as...
Regulation and Political Economy. The political economy model of regulation is a framework that seeks to explain how regulations are formed and implemented within a political and economic context. It explores the interactions between different actors, such as government agencies, interest groups, and businesses, and how...
There are several methods used for environment valuation, which involve assessing and quantifying the economic value or worth of natural resources and ecosystem services. These methods help policymakers, economists, and environmentalists make informed decisions regarding the management and conservation of the environment. Here are some...
The Johansen theory of public expenditure, also known as the Johansen equation, is an economic theory that seeks to explain the relationship between government spending and economic growth. This theory was developed by the Norwegian economist Finn E. Kydland and Bengt Holmstrom in the late...
The Nurkse theory of balanced growth, also known as the balanced growth theory, was developed by the Estonian economist Ragnar Nurkse in the mid-20th century. The theory focuses on the concept of balanced development or balanced growth in developing countries. According to Nurkse, balanced growth refers...
The Factor Price Equalization (FPE) theorem is an economic concept that suggests that under certain assumptions, the prices of factors of production, such as labor and capital, will tend to equalize across different countries or regions in the long run. The theorem is based on...