Archives: Terms

Definition of Zoning Zoning refers to the process through which authorities, typically local governments, designate specific areas of land for particular uses. These designations are made under zoning ordinances or laws and are intended to guide urban growth and development in a structured manner. Essentially, zoning laws categorize regions into […]

Definition of Zero-rated (VAT) Zero-rated VAT refers to goods and services that are taxable, but at a VAT (Value-Added Tax) rate of 0%. This means that the tax rate applied to these items is zero, thus the consumer does not pay any VAT on the purchase. Yet, businesses that supply […]

Definition of Zero-Base Budgeting (ZBB) Zero-Base Budgeting (ZBB) is a budgeting approach in which each expense must be justified for each new period. Unlike traditional budgeting, where past budgets are the basis for new budgets, ZBB starts from a “zero base.” Every function within an organization is reviewed comprehensively and […]

Definition of Zero Growth Zero growth, in economic terms, refers to a situation where an economy’s Gross Domestic Product (GDP) remains static over a specific period, meaning it neither grows nor shrinks. This implies that the economy is in a state of equilibrium where the output of goods and services […]

Definition of Zero Coupon Bond A zero-coupon bond is a type of debt security that does not pay interest (a coupon) but is instead sold at a deep discount, rendering a profit at maturity when the bond is redeemed for its full face value. The investor receives the face value, […]

Definition of Yule-Walker Equations Yule-Walker equations are a set of statistical formulas used primarily in time series analysis and signal processing to estimate the parameters of autoregressive (AR) models. Named after the British statistician George Udny Yule and American astronomer Gilbert Walker, these equations relate the autocorrelations of a stationary […]

Definition of Yield Gap Yield gap refers to the difference between the potential maximum crop yield and the actual crop yield achieved by farmers. This gap reflects the variations in crop productivity due to factors such as suboptimal farming practices, disease, poor soil quality, inadequate water supply, and lack of […]

Definition of Yield Curve The yield curve is a graphical representation that shows the relationship between interest rates and the maturity dates of debt securities issued by a borrower, typically the government. It plots interest rates across different contract lengths, typically ranging from short-term (a few months) to long-term (30 […]

Definition of Yen The yen is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the US dollar and the euro. The symbol for the yen is ¥, and its currency code is JPY. Introduced by the Meiji government in 1871, […]

Definition of the Yaoundé Convention The Yaoundé Convention refers to two agreements signed between the European Economic Community (EEC) and 18 African states, mostly former French colonies, in 1963 and 1969. These conventions aimed at fostering economic cooperation and development. The agreements established a framework for trade relations and development […]