Archives: Terms

The topic of “convergence in mean squares” pertains more to the realm of statistics and probability theory than to economics directly. However, understanding this concept can be essential in economic modeling and econometrics. Let’s delve into the basics of this concept, providing a glossary-style overview catered to readers interested in […]

Definition of Convergence in Distribution Convergence in distribution, a concept from probability theory and statistics, refers to a condition where a sequence of random variables becomes closer to a specific random variable in distribution as the number of variables increases. In simpler terms, no matter how the sequence of random […]

Definition of Convergence Criteria Convergence criteria are economic indicators that European Union (EU) member states must meet to adopt the euro as their currency and participate in the Eurozone. Also known as the Maastricht criteria, after the Maastricht Treaty, which laid down these rules, the criteria are designed to ensure […]

Definition of Convergence (Economic) Convergence in economics refers to the hypothesis that poorer economies’ per capita incomes will tend to grow at faster rates than richer economies. As a result, all economies should eventually converge in terms of per capita income. In detail, it assumes that with the appropriate policies […]

Definition of the Convention on International Trade in Endangered Species (CITES) The Convention on International Trade in Endangered Species of Wild Fauna and Flora, commonly referred to as CITES, is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants […]

Definition of Control (of a Company) Control in the context of a company refers to the power to influence or direct the company’s policies, decisions, and management. This includes making strategic decisions, appointing or removing executives, and guiding the company’s overall direction and operational activities. Control can be exerted through […]

Definition of Contributory Pension Scheme A Contributory Pension Scheme is a retirement plan where both the employer and employees contribute a predefined percentage of the employees’ salaries towards the pension fund. This scheme is designed to accumulate a retirement corpus for the employees, which they can use after retirement. The […]

Definition of Contractual Savings Institutions Contractual savings institutions (CSIs) are financial intermediaries where individuals or entities commit to long-term saving contracts, agreeing to contribute a specified amount of money over a period. CSIs, such as pension funds, life insurance companies, and annuity providers, primarily invest these funds in various financial […]

Definition of Contracted-Out Services Contracted-out services refer to a business arrangement in which a company or a public sector organization outsources certain tasks or services to an external provider. This external provider could be another company, a freelance professional, or any other type of service provider. The services contracted out […]

Definition of Contract of Employment A Contract of Employment, also known as an employment agreement, is a form of agreement between an employer and an employee which outlines the terms and conditions of employment. This legal document specifies the rights, responsibilities, and obligations of both parties during the employment period. […]