Archives: Terms

Definition of Constant Prices Constant prices refer to a method of valuing goods or services at prices that are not affected by inflation or deflation over time. This means that these prices are adjusted to reflect only the real value or volume of goods and services, excluding the impact of […]

Definition of Constant Elasticity of Substitution (CES) The Constant Elasticity of Substitution (CES) refers to a class of production, utility, or cost functions that describe the rate of substitutability between two or more inputs (factors of production) or goods while maintaining a constant rate of substitution. This constant rate of […]

Definition of Consortium A consortium is an association or a combination of several businesses, financial institutions, governments, or individuals who agree to pool resources or work together towards a common objective. Often, these entities engage in large projects that would be difficult to manage individually due to high costs or […]

Definition of Consols Consols, short for “consolidated annuities,” are a type of government bond or fixed-income security issued by the British government. Originating from the consolidation of various government debts in the 18th century, Consols were unique because they had no maturity date. Instead, they offered investors a perpetual annual […]

Definition of Consolidated Accounts Consolidated accounts refer to the combined financial statements of a parent company and its subsidiaries. This comprehensive overview presents the financial position and results of operations of a group as if it were a single economic entity. The purpose of consolidating accounts is to provide stakeholders, […]

Definition of Consistent Estimator A consistent estimator refers to a statistical property of an estimation method in which, as the size of the sample increases to infinity, the estimates produced by the method converge in probability to the true parameter being estimated. Essentially, the more data points you have, the […]

Definition of Conservative Social Welfare Function A conservative social welfare function is a concept in welfare economics that weighs the welfare of the least advantaged members of society more heavily than that of others. It is a principle or rule for evaluating and guiding the allocation of resources and assessing […]

Definition of a Conservative Central Banker A conservative central banker is characterized by a primary focus on maintaining price stability and controlling inflation, often over other economic objectives such as full employment or fostering economic growth. This approach stems from a belief that controlling inflation is the central bank’s most […]

Definition of Conjectural Variation Conjectural variation refers to the expectations that firms have regarding the response of their rivals to a change in their own output or price levels. It is a concept used primarily in the field of industrial organization and oligopoly markets, where the number of competitors is […]

Definition of Conglomerate Merger A conglomerate merger refers to the combination of two or more corporations engaged in entirely different business activities that have no common or related areas of operation. These mergers typically involve companies that have nothing to do with each other’s products, services, or market sectors. The […]