Archives: Terms

Definition of Humanistic Economics Humanistic Economics is a framework that emphasizes the well-being of humans and the environment over traditional economic indicators like GDP growth or productivity. This approach views the economy not as an end in itself but as a means to achieve a more equitable, fulfilling, and sustainable […]

Definition of Human Capital Flight Human Capital Flight, often referred to as ‘brain drain,’ refers to the emigration of highly skilled and educated individuals from one geographical area to another, usually from developing to developed countries. This migration is often driven by factors such as better employment opportunities, higher wages, […]

Definition of the Huff Model The Huff model, named after David L. Huff in 1964, is a spatial analysis methodology used primarily in the field of retail location strategy and urban planning. This model predicts the probability of consumers choosing one shopping location over another based on distance, the attractiveness […]

Definition of Hourglass Economy An hourglass economy describes a socioeconomic phenomenon where there is significant growth at both the top and bottom ends of the wealth and income spectrum, but a noticeable thinning or contraction in the middle. This model implies that the middle class is shrinking, while both the […]

### Hotelling’s Lemma Definition of Hotelling’s Lemma Hotelling’s Lemma is a fundamental concept in microeconomic theory, particularly in the field of production economics. It provides a relationship between the firm’s profit function and the supply function for its products. Specifically, Hotelling’s Lemma states that for a firm operating under competitive […]

Definition of Hotelling’s Law Hotelling’s Law, a concept in economics derived from Harold Hotelling’s work in the 1920s, is often referred to as the principle of minimum differentiation or the principle of locational interdependence. It postulates that competitors, selling similar goods or services and seeking to maximize sales, profits, and […]

Unfortunately, it seems like you haven’t provided a specific text or question for me to create an extensive glossary post on the topic of “home bias in trade puzzle.” However, I’ll gladly provide a comprehensive explanation of this concept based on the title you’ve mentioned. — Definition of Home Bias […]

### Definition of Holmström’s Theorem Holmström’s theorem, named after the Finnish economist Bengt Robert Holmström, is a principle in the field of contract theory and economics. It encompasses a set of conditions under which a contract can provide the optimal incentives for parties involved in a principal-agent relationship. The theorem […]

Definition of Hodrick-Prescott Filter The Hodrick-Prescott (HP) filter is a mathematical tool used in macroeconomics and finance to remove the cyclical component of a time series from raw data. This process helps in identifying the underlying long-term trend component in economic data sets. Economists Robert Hodrick and Edward Prescott popularized […]

Definition of the Historical School The Historical School of economics is a branch of economic thought that emphasizes the importance of historical context and empirical data in analyzing economic systems. This school rejects the idea of universal economic laws, arguing instead that economic phenomena are the result of unique historical […]