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Definitions
Averch-Johnson Effect
Economics
Regulation
Investment
The observation that whenever the profit-to-capital ratio of a company is regulated, it has an incentive to over-invest in capital, resulting in inefficiently high levels of capital accumulation.
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Definitions
Avoidable Cost
Economics
Cost Terminology
Financial Analysis
An economic term referring to costs that can be eliminated by ceasing an activity or production.
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Definitions
Avoidance - Definition and Meaning
Economics
Tax Policy
Avoidance
Evasion
Exploring the concept of avoidance, with a focus on its applications within economics and tax policy, and its differentiation from evasion.
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Definitions
Axiom - Definition and Meaning
Economics
Axiom
Economic Theory
Logical Reasoning
A logical starting point used in economic deduction without needing proof or demonstration.
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Definitions
Axioms of Preference
Economics
Rational Preferences
Indifference Curves
Choice Theory
A set of basic concepts characterizing rational preferences in economics.
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Definitions
Backdoor Monetary Policy
Monetary Policy
Economics
Finance
The conduct of monetary policy through channels that are not publicly observable.
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Definitions
Backward Induction
Economics
Game Theory
Decision-Making
Definition and meaning of backward induction
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Definitions
Backward Integration
Economics
Investment
Strategy
The expansion of a firm’s activities to include the production of inputs formerly sourced from outside.
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Definitions
Backwardation
Economics
Futures Market
Commodity Trading
A situation in which the futures price of a commodity is lower than the spot price.
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Definitions
Bad Bank
Bad Bank
Toxic Assets
Banking Crises
A financial institution created to hold toxic assets to remove problem assets from other banks' balance sheets.
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Definitions
Bad Debt
Finance
Economics
Debt
Debt that is known to be impossible or unlikely to be repaid.
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Definitions
Bad Debt Provision
Accounting
Finance
Bad Debts
Write-Offs
The estimation recorded in the accounts by a creditor reflecting the anticipated write-offs of bad debts.
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Economics Terms Lexicon
Ultimate Dictionary of Economics and Beyond.
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