Archives: Terms

Definition of Hindu Rate of Growth The term “Hindu Rate of Growth” is a controversial and somewhat derisive term that refers to the low economic growth rate experienced by India from the 1950s to the 1980s. Specifically, this period saw a growth rate of around 3.5%, which, when adjusted for […]

Definition of the Hiding Hand Principle The Hiding Hand principle is a concept coined by economist Albert O. Hirschman in his seminal work, “The Principle of the Hiding Hand.” It posits that both the complexity of a large-scale project and the creativity to solve unforeseen problems are underestimated at the […]

Definition of Hicksian Demand Function The Hicksian demand function, named after the British economist Sir John Hicks, is a concept in consumer choice theory that represents the relationship between the quantity of goods that a consumer would choose to consume and their prices while maintaining a constant level of utility. […]

Definition of the Herfindahl-Hirschman Index The Herfindahl-Hirschman Index (HHI) is a measure of market concentration used to determine the level of competition within an industry. It is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. The HHI provides a […]

Definition of Henry George Theorem The Henry George Theorem posits that public spending financed by a tax on land value can enhance the well-being of a society without causing economic inefficiency. Named after the 19th-century American economist Henry George, who advocated for the taxation of land, this theorem suggests that […]

Definition of Hedonic Regression Hedonic regression is a method used in economics to estimate the value of a commodity by breaking down its constituent properties and evaluating the contribution of each attribute to the overall price. This technique is particularly useful for goods and services that are complex and cannot […]

Definition of Hedonic Index A hedonic index is a method used in economics to measure changes in prices or quality of goods and services, taking into account the variations in their characteristics or features. It is often used to adjust pure price changes and separate them from changes in quality, […]

Definition of the Heckscher–Ohlin Theorem The Heckscher–Ohlin theorem is a fundamental principle in international economics that explains how and why countries engage in international trade. It suggests that countries export goods that require production resources (factors of production) that are abundantly available and import goods that require resources that are […]

Introduction to Health Economics Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value, and behavior in the production and consumption of health and healthcare. In essence, it studies how healthcare resources are allocated, including the costs and benefits of healthcare services, the budgeting and […]

Definition of Hauser’s Law Hauser’s Law is an empirical observation regarding tax revenues in the United States. It posits that, despite fluctuations in tax rates over time, federal tax revenues consistently hover around 19.5% of the Gross Domestic Product (GDP). This observation suggests that changes in tax rates have a […]