Archives: Terms

Definition of Reduced Form Reduced form refers to an equation in econometrics that directly expresses the dependent variable as a function of the independent variables, without involving any intermediary variables or endogenous variables. These equations are derived from structural form equations of an economic model. By solving the structural form […]

Definition of Redistributive Tax Redistributive tax refers to a system of taxation designed to reduce income inequality by transferring wealth from the richer segments of society to the poorer ones. It aims to achieve a more equitable distribution of income and wealth, thereby enhancing social welfare. Redistributive taxes are typically […]

Definition of Rediscount Rediscount refers to the process by which a central bank provides liquidity to commercial banks by purchasing their short-term financial instruments, such as bills of exchange, promissory notes, or other eligible securities, that were originally discounted by a commercial bank for their customers. In essence, the central […]

Definition of Redeployment Redeployment refers to the process of moving employees from one role or task within an organization to another in order to better align their skills and competencies with the needs of the company. It is often a strategic decision aimed at optimizing the workforce, addressing skill gaps, […]

Definition of Redemption Yield Redemption Yield, also known as Yield to Maturity (YTM), is the total return anticipated on a bond if it is held until it matures. It is essentially the internal rate of return (IRR) for a bond, assuming that the bond will be held to maturity and […]

Definition of Redemption Value Redemption Value refers to the price at which a bond or other fixed-income security can be redeemed by the issuer before it reaches its maturity date. This essentially represents the amount that an investor will receive when the bond or security is repaid. The redemption value […]

Definition of Redemption Date The redemption date, also known as the maturity date, is the specified date on which the principal amount of a financial instrument such as a bond, debenture, or preferred stock is to be repaid to investors. This date marks the end of the instrument’s lifecycle, at […]

Definition of Redeemable Security A redeemable security is a type of financial instrument that can be returned or sold back to the issuer in exchange for its principal value within a specified period or on a specific date. This feature allows investors to recover their initial investment, thus providing a […]

Definition of Recycling Recycling is the process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products. This process helps to conserve natural resources, reduce the amount of waste sent to landfills and incinerators, save energy, and diminish pollution. It involves […]

Definition of Recursive Model A recursive model in economics is a type of model in which the variables and equations are arranged in a sequential order where each variable depends only on those that precede it in the sequence. This structure simplifies the analysis and computation because it avoids the […]