Archives: Terms

Definition of Atkinson Index The Atkinson Index is a measure of income inequality that reflects the sensitivity of the measure to changes in different parts of the income distribution. Named after economist Anthony Barnes Atkinson, this index provides a tool to gauge the economic disparity among individuals within a society. […]

Definition of Asymptotic Theory Asymptotic theory, in the realm of economics and statistics, refers to a framework used for making inferences about the properties of estimators and statistical tests as the sample size approaches infinity. The term “asymptotic” itself means approaching a value or curve arbitrarily closely as some limit […]

Definition of Asymptotic Distribution An asymptotic distribution is a theoretical concept in statistics and probability theory that describes the distribution that a sequence of sample statistics of increasing sample size would converge upon as the sample size grows to infinity. Essentially, it provides a way to approximate the distribution of […]

Definition of Assisted Area An Assisted Area is a geographic region identified by governments for receiving financial aid or other forms of support due to its economic disadvantages. This designation typically targets areas suffering from high unemployment, low income, and industrial decline, aiming to stimulate economic development and job creation. […]

Definition of Economic Assets Economic assets are defined as resources that possess monetary value and are owned by an individual, corporation, or government with the expectation that they will provide future benefit. These assets are essential elements in the operation of a business or the personal financial portfolio of individuals, […]

Definition of Asset Prices Asset prices refer to the market value of assets such as stocks, bonds, real estate, commodities, and other financial instruments. These prices reflect the current market consensus on the value of these assets, influenced by various factors including economic indicators, corporate earnings, geopolitical events, and market […]

Definition of Asset Motive The asset motive refers to the reasons behind individuals’ or organizations’ desire to hold onto assets as a part of their portfolio. Assets, in this context, can range from physical assets like real estate and machinery to financial assets such as stocks, bonds, and money. The […]

Definition of Assembly Line An assembly line is a manufacturing process in which parts are added to a product in a sequential manner to create a finished product much more efficiently than with traditional manufacturing methods. It is a form of mass production in which each worker, or a group […]

Definition of Asia-Pacific Economic Cooperation (APEC) Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region. Founded in 1989, APEC aims to ensure that goods, services, investment, and people move easily across borders by reducing […]

Definition of Arrow-Debreu State Price An Arrow-Debreu state price, named after economists Kenneth Arrow and Gerard Debreu, represents a theoretical concept in the realm of financial economics. It denotes the price of a contingent claim that pays one unit of currency if a specific state of the world occurs, and […]