Archives: Terms

Definition of Pareto Distribution Pareto Distribution is a mathematical concept used to describe a particular type of skewed distribution that is often observed in nature, finance, and social studies. It was named after Vilfredo Pareto, an Italian economist, who noted that 80% of Italy’s land was owned by 20% of […]

Definition of Parameter A parameter, in the context of economics, refers to a variable that is considered to be constant for the purpose of a specific analysis but can change in different contexts or analyses. These are key characteristics or values that define the behavior of a model or equation […]

Definition of the Paradox of Voting The paradox of voting, also known as Downs’ paradox, refers to the situation where the costs of voting (e.g., taking the time to inform oneself about the candidates and issues, then actually going to vote) outweigh the seemingly negligible benefit that any one voter’s […]

Definition of Par Value Par value, also known as nominal value or face value, is a term used mostly in finance to denote the stated value or face value of a financial instrument. For stocks, it is the minimum price at which shares can be issued, as specified in the […]

### Definition of Panel Data Panel data is a type of data that is collected from a group of individuals over multiple time periods. This kind of data set is unique in that it tracks the same subjects, allowing for the analysis of changes over time at the individual level […]

Definition of Paid-Up Capital Paid-up capital refers to the amount of money a company has received from shareholders in exchange for shares of stock. It represents the funds raised by the company through the issuance of shares at par value or above, but not below. This capital is paid directly […]

Definition of Package of Policies A package of policies refers to a set of various governmental strategies, legislations, and initiatives designed to address multiple aspects of an economic, social, or environmental issue in a holistic manner. Rather than focusing on a single policy tool, governments often deploy a combination of […]

Definition of Paasche Index The Paasche Index is a consumer price index used to measure the price level change over time of a basket of goods and services purchased in the current period compared to a base period. It differs from its counterpart, the Laspeyres Index, in that it uses […]

Definition of Ownership Ownership refers to the legal right to possess, use, and dispose of something. It is a fundamental concept in economics that denotes the relationship between an individual or group and an asset or property. Ownership confers upon the holder the ability to control the use of the […]

Definition of Owner-Occupied Housing Owner-occupied housing refers to properties that are owned and inhabited by the person who holds the title to the property, as opposed to rental properties where the occupant pays rent to a landlord. This term is crucial in the context of real estate markets, housing policy, […]