Routledge Dictionary of Economics Second edition phần 10 pot

bad state of affairs, e.g. incompetence,
deceit and fraud.
white-collar worker (J2)
A non-manual worker employed in an
office, laboratory or shop; a manager,
professional worker, clerk, technician or
sales assistant. There have been proportio-
nately more of these workers in the labour
force because of technological change, the
growth of the public sector and the in-
creasing bureaucratization of firms in oli-
gopolistic industries. It was feared in the
1950s that this shift in the occupational
structure would lead to the demise of
TRADE UNIONS but instead new trade unions
specializing in the organization of white-
collar workers have emerged, especially in
the public sector. This upgrading of the
labour force has contributed to rising
labour costs.
white good (D0, L6)
1 A consumer durable, such as a washing
machine, cooker or refrigerator, which
is usually painted white.
2 Household linen (the original meaning
of the term).
Seealso:browngood;consumerdurable
white knight (G3)
A friendly bidder for a company already
facing a hostile takeover bid.
white market (D4)

A legal market not in contravention of any
governmental regulation; the opposite of a
BLACK MARKET.
white noise (C1)
A completely random time series, all
lagged correlations being zero; its spec-
trum density is constant.
white revolution (Q1)
An agricultural revolution, particularly
promoted in India, which encouraged the
growth of herds of dairy cattle.
white squire (G3)
A company or several companies acting
jointly in support of a
WHITE KNIGHT in the
fight against a predatory company partici-
pating in a
TAKEOVER battle.
whole life insurance (G2)
Insurance which both promises to pay a
stated amount on the death of the insured
and has an accumulated cash value avail-
able as collateral for a loan.
wholesale bank (G2)
A bank acquiring its deposits from cor-
porations and the interbank market.
Seealso:retailbank
wholesale money market (G1)
An interbank market in which banks offer
or obtain large deposits from each other.

This is an important way for
MERCHANT,
INVESTMENT and other SECONDARY BANKS to
obtain deposits as they do not receive
deposits directly from the public.
wholesale price index (E3)
UK index of the group of commodities
bought and sold by wholesalers. Changes
in this index precede and indicate likely
changes in the
RETAIL PRICE INDEX.
Seealso:coincidentindicators
Wicksell, Knut, 1861–1926 (B3)
Leading Swedish economist whose ideas
were to inspire the
STOCKHOLM SCHOOL and
form a basis for a macroeconomic theory
alternative to
KEYNESIANISM. Educated at
Uppsala University in mathematics, Wick-
sell soon showed himself to be a coura-
geous liberal, especially in propagating
NEO-MALTHUSIAN views – like John Stuart
MILL he was arrested for doing so. Income
from journalism and various grants en-
abled him to undertake independent study
in 1885–1900; he came under the influence
of
Bo
¨

HM-BAWERK and acquired a great ad-
miration for his theory of capital. This
influence was clear in his celebrated Value,
Capital and Rent (1893, original German
edition) and Interest and Prices (1898,
original German edition). A major theme
of his work was the relationship between
NATURAL RATES and MARKET RATES OF INTER-
EST
which, he believed, are at the heart of
© 2002 Donald Rutherford
cumulative processes of expansion and
contraction in the economy. His work, as
indicated by his lectures at Lund Univer-
sity (where he was a professor from 1901),
shows that he was eager to synthesize the
capital theory of the
AUSTRIAN SCHOOL with
Walrasian
GENERAL EQUILIBRIUM notions
and other
NEOCLASSICAL insights.
Seealso:purecrediteconomy
References
Gardlund, T. (1958) The Life of Knut
Wicksell,Stockholm: Almqvist & Wiksell.
Uhr, G.C. (1960) The Economic Doctrines
of Knut Wicksell, Berkeley, CA: Califor-
nia University Press.
wide monetary base (E4)

Notes and coins in circulation with the
public plus banks’ till money plus bankers’
balances with the Bank of England (UK).
wider share ownership (G0)
Widespread ownership of the shares of
public companies throughout the popula-
tion. It is argued that encouragement of this,
as in the UK, makes private capitalism more
acceptable throughout the country and that
companies are less vulnerable to
TAKEOVER
as private shareholders retain their shares
longer than
INSTITUTIONAL INVESTORS do. In
the UK,
PRIVATIZATION has increased the
number of persons holding shares.
widget (D0)
A convenient term for a non-specified
product or service used in discussions of
the principles of costing or industrial
processes.
widow’s cruse (E0)
1 The Cambridge expression, used by
KAHN and Joan ROBINSON, to refer to an
economy which continues at the same
level of output, neither expanding nor
contracting as any spending of entre-
preneurs’ profits leads to an equal
creation of other profits elsewhere in

the economy.
2 The money-creating process of continu-
ally increasing money through bank
lending.
Williamson, Oliver Eaton, 1932– (B3)
Educated at MIT, Stanford and Carnegie
Mellon Universities. Apart from a time as
assistant professor at Berkeley, University
of California, in 1963–5, he has been a
professor at the University of Pennsylva-
nia from 1965. His work on
TRANSACTION
COSTS
, organizational hierarchies and ANTI-
TRUST
policy have made him a leader of the
revived school of
INSTITUTIONAL ECONOMICS.
References
Williamson, O.E. (1970) Corporate Control
and Business Behavior, Englewood Cliffs,
NJ: Prentice Hall.
—— (1975) Markets and Hierarchies,New
York: Free Press.
—— (1986) Economic Organization: Firms,
Markets and Policy Control, Brighton:
Harvester Wheatsheaf.
windfall gain or loss (E0)
An unexpected increase or decrease in ex
post income; if it had been expected, it

would have been included in ex ante
income. These windfalls are part of
TRAN-
SITORY INCOME
but not of PERMANENT IN-
COME
.
windfall profit (D0, E0)
An unexpected
PROFIT arising from a cir-
cumstance not controlled by a firm or an
individual. These profits constitute
TRANSI-
TORY INCOME
and can give rise to unusual
consumer behaviour.
window dressing (G2)
Interbank borrowing to improve the ap-
pearance of a bank’s balance sheet. This
was abandoned by UK
CLEARING BANKS in
1946 but is still practised in some banking
systems, e.g. in France.
winner’s curse (C7)
Paying more for an item than its value.
This is measured by the difference between
a winner’s bid and the next lower bid in a
single unit auction.
withdrawal (E0)
Not spending income on domestically

produced goods and services but using it
to buy imports, pay taxes or make savings
© 2002 Donald Rutherford
with the consequence that the value of the
MULTIPLIER is reduced. The CIRCULAR FLOW
OF INCOME
distinguishes withdrawals from
INJECTIONS. Also known as a leakage.
withholding tax (H2)
A tax on earnings, interest or dividend
payments deducted at source. This tax is
designed to simplify the collection of tax
and to ensure that tax is not evaded. By
taxing dividends due for repatriation, it is
hoped that foreign-owned companies will
be encouraged to invest in the country
where their subsidiaries are located.
womeneconomists(B3)seefemale
economists
Wootton, Barbara, 1897–1988 (B3)
Economist and social scientist noted for her
works on
INCOMES POLICY, PLANNING and
criminology. She was educated at Girton
College, Cambridge, where she originally
read classics before a reading of
MAR-
SHALL
’s Principles of Economics caused her
to specialize in economics. Although being

awarded first-class honours with distinc-
tion, university regulations prevented her,
as a woman, from taking her degree. Soon
she was made a fellow of Girton and
Director of Studies in Economics. In
1922, she became a research officer of the
Trades Union Congress. From 1926 to
1928 she was Principal of Morley College
for Working Men and Women, then Di-
rector of Studies for Tutorial Classes in the
University of London (1928–45), Professor
of Social Studies (1945–52) and at the end
of her career a Nuffield research fellow.
Her achievements were recognized by
the award of many honorary degrees, a life
peerage and being made a Companion of
Honour. Throughout her works there is a
practical utilitarian concern to relate pro-
blems to reality. Her attack on Lionel
ROBBINS’s definition of economics in her
Lament for Economics and her approach
to planning and wage policy all indicated
her desire to influence policy-makers by
using an empirical approach. Much of her
knowledge of economy and society came
from membership of many committees
and commissions on leading public issues
covering topics ranging from criminal
statistics, hallucinogens and broadcasting
to taxation, shop hours and the Civil

Service. She married John Wesley Wootton
when she was 20; he was killed five weeks
later in the First World War. She was
married a second time in 1934 to a
student, George Wright.
References
Bean, P. and Whynes, D. (eds) (1986)
Barbara Wootton. Social Science and
Public Policy. Essays in her Honour,
London and New York: Tavistock.
Wootton, B. (1934) Plan or No Plan,
London: Gollancz.
—— (1938) Lament for Economics, Lon-
don: Allen & Unwin.
—— (1945) Freedom under Planning, Lon-
don: Allen & Unwin.
—— (1959) Social Science and Social
Pathology, London: Allen & Unwin.
—— (1964) The Social Foundations of
Wage Policy: A Study of Contemporary
British Wage and Salary Structure, 2nd
edn, London: Allen & Unwin.
—— (1967) In a World I Never Made:
Autobiographical Reflections, London:
Allen & Unwin.
workable competition (D4, L1)
Competition meeting only some of the
conditions for
PERFECT COMPETITION;an
absence of

ANTI-COMPETITIVE PRACTICES.Itis
a
SECOND-BEST situation. The criteria for an
industry being in a state of workable
competition are its level of profits relative
to normal profits, its costs relative to those
of the most efficient scale, the extent of its
product variation and selling costs and its
rate of technical progress relative to what
is considered satisfactory. These condi-
tions indicate how
NORMATIVE the concept
is. The notion is central to the implemen-
tation of US
ANTITRUST policy and increas-
ingly used in UK
COMPETITION POLICY.
References
Clark, J.M. (1961) Competition as a Dy-
namic Process, Washington, DC: Brook-
ings Institution.
© 2002 Donald Rutherford
Sosnick, S.H. (1958) ‘A critique of con-
cepts of workable competition’, Quar-
terly Journal of Economics 72: 380–423.
Utton, M.A. (1986) The Economics of
Regulating Industry, Oxford: Basil
Blackwell.
work classification (J2)
A method of classifying work require-

ments which is an alternative to job
description. The elements in the classifica-
tion are the work range, the work struc-
ture (how changeable work goals are),
work control (how much discretion is
involved) and the cognitive effort required.
This classification has been applied to
knowledge-intensive
WHITE-COLLAR work.
worker compensation insurance (I3)
Sickness and accident benefits financed by
employers’ premiums. In the USA the
amount of such insurance varies from
state to state and according to the accident
record of the firm.
workers’ participation (L2)
The participation of employees in the
management of their firms. In Europe, a
major example since 1950 has been Ger-
many. There, two basic laws govern such
schemes: the works constitution law ( Be-
triebsverfassungsgesetz) and co-determina-
tion law (Mitbestimmungsgesetz). Under
the former, works councils, which can
determine several matters including work-
ing hours and vacations, can be formed if
more than five workers are regularly em-
ployed. Co-determination law deals with
the structure of the supervisory board that
exists in addition to an executive board

and has worker representatives. The law,
originally applied only to the iron, steel
and coal industries, stipulated an equal
number of employee and shareholder re-
presentatives on supervisory boards. Gra-
dually, this type of workers’ participation
has spread to private sector firms. In 1976,
the law was extended to all companies
with over 2,000 employees, an extension to
smaller companies being strongly resisted
by employers. The chairman, a share-
holders’ representative, has a second (cast-
ing) vote and the representation of senior
staff on the supervisory board has, it is
argued, weighted the composition in fa-
vour of the management.
Seealso:industrialdemocracy
workfare (J2, J6)
US schemes of community work qualify-
ing the unemployed for social security
benefits. The idea was first used by the
Roosevelt Administration in the 1930s.
The US Federal Act of 1981, the Omnibus
Budget Reconciliation Act, forced all re-
cipients of federal or state aid to register
for work or job training and gave the
states the powers to require such persons
to participate in work incentive, job search
or work experience programmes. These
schemes have been criticized for creating

slave labour, for displacing existing work-
ers, for adding to administrative costs and
for reducing the chance of the unemployed
seeking good jobs. The most enthusiastic
implementation of the scheme has been in
West Virginia. Other countries, e.g. Swe-
den, have versions of such schemes to keep
down the level of unemployment.
References
Ravallion, M. (1999) ‘Appraising Work-
fare’, World Bank Research Observer 14:
31–48.
working capital (M2)
Current assets minus current liabilities;
capital available to provide short-term
financing for a firm.
CLASSICAL ECONOMISTS
regarded this as mainly the raw materials
and the
WAGES FUND. Today it is often
regarded as a measure of the
LIQUIDITY of
a firm.
workingcapitalratio(M4)seecurrent
ratio
working hours (J2)
The total number of hours a person works
per day or per week. The view that
reduced hours increases workers’ welfare
and chances of employment is based on

too simplistic an analysis: a reduction in
hours often raises unit labour costs which,
© 2002 Donald Rutherford
in turn, reduces international competitive-
ness and profit margins on traded goods
leading to lower economic growth and
employment. If reduced working hours
raise
PRODUCTIVITY, no extra demand for
labour results. In France, working hours
were reduced from forty to thirty-nine per
week, with full compensation, in January
1982; in West Germany, the Metalworkers
Union demanded in 1984 a reduction from
forty to thirty-five hours with partial
compensation.
MARX made the length of the working
day a key issue: he argued that working
hours longer than those spent in produ-
cing subsistence for workers created
SUR-
PLUS VALUE
. Paradoxically, working hours
have been longer in socialist countries,
being forty-two to forty-five hours per
week. But in the developing countries of
Africa and Asia weekly working hours are
often as much as fifty or fifty-five. Japan,
which has industrialized only recently, still
has long average working hours, about

forty-eight per week (three-quarters of the
labour force works a six-day week).
workingpopulation(J2)seelabourforce
working-time regime (J2)
The rules set down in the
EUROPEAN SOCIAL
CHAPTER
stating the maximum length of the
working week and working day and the
dispersion of hours. Full-time and part-
time work are both covered.
Seealso:annualized-hourssystem;flex-
ibleworking-timeschemes
work sharing (J6)
A method of reducing unemployment by
splitting a full-time job into two part-time
jobs. Parents sometimes do this in order to
share in domestic duties and child rearing.
Occupations introducing this form of shar-
ing include school teaching and social
work.
Seealso:jobsharing
World Bank (F3, G2)
Popular name for the International Bank
for Reconstruction and Development
which was conceived at
BRETTON WOODS in
1944 and started business in 1947; it was
intended that it should be linked to the
INTERNATIONAL MONETARY FUND by member

countries belonging to both. It aims to
encourage the provision of private, rather
than public, investment. Of its initial
authorized capital of $10 million, one-
tenth was paid in dollars and gold. Fed-
eral and state bonds of the bank issued in
the USA raised a substantial amount of
the original capital. At different phases of
its life, it has been a bank of reconstruc-
tion, a development bank and a policy
reformer.
Current aims suggested for the bank
include the major provision of funds and
technical advice to Third World borrowers,
the co-ordination of aid to less developed
countries and theoretical leadership in de-
velopment policy. Some people in the USA
regard the World Bank as a means of
spreading US political philosophy and
monetarism, but the financial rise of Japan
as the world’s major lender increasingly
diminished US influence. In recent years,
the bank has lent about 90 per cent of its
advances for infrastructure projects, e.g.
education, health, irrigation and telecom-
munications. Currently, recipient countries
are being asked to adopt price reforms and
market-related trading reforms.
world debt problem (F3)
The consequences of the large debts of less

developed countries accumulated since
1970. The magnitude of this indebtedness
has given rise to problems of debt servi-
cing and the stability of the banking
system. The significance of the debts has
often been measured by the ratios of debt
to gross national product or of debt to
service, but it has been asserted that a
better measure is the comparison of the
rate of growth of export earnings with the
rate of interest. Several approaches have
been suggested to reduce this indebted-
ness, e.g. in 1986 the World Bank sug-
gested
SECTOR ADJUSTMENT LENDING as a
means of reducing the indebtedness of
© 2002 Donald Rutherford
certain THIRD WORLD countries. Some coun-
tries have reduced their indebtedness by a
policy of exchanging debt for equity but
there are limits to such conversions as
many national governments are alarmed
to see more foreign ownership of domestic
companies. Major Western banks have
gradually written off these loans as bad
debts.
Seealso:debtserviceindicators;Jubilee
2000
References
Griffith-Jones, S. (ed.) (1988) Managing

World Debt, Brighton: Harvester
Wheatsheaf.
Holley, H.A. (1987) Developing Country
Debt: The Role of the Commercial
Banks, London: Routledge.
World Economic Forum (F0)
An annual meeting of leading politicians
and bankers at Davos, Switzerland, to
discuss strategies to keep the world econ-
omy on an even course. In 1970 Professor
Klaus Schwab convened an informal gath-
ering of Europe’s chief executives at Davos
under the patronage of the Commission of
European Communities and the following
year created a non-profit-making founda-
tion, the European Management Forum,
subsequently renamed the World Eco-
nomic Forum in 1987. It has expanded its
activities to organize meetings for all
major world regions and brought together
heads of states and governments too.
Increasingly it has been lobbied at its
meetings by protestors against global ca-
pitalism.
world inflation (E3)
The rates of inflation country by country
around the world, measured by annual
rates of increase of consumer or producer
prices. Countries with high post-war infla-
tion records include Argentina, Brazil,

Israel, Mexico and Yugoslavia; countries
with low post-war inflation records in-
clude Japan, Switzerland, the USA, and
West Germany before reunification.
References
Brown, A.L. (1985) World Inflation since
1950, Cambridge: Cambridge University
Press.
Horsman, G. (1988) Inflation in the Twen-
tieth Century, Brighton: Harvester
Wheatsheaf.
World Intellectual Property Organiza-
tion (O3)
A Geneva-based body concerned with
upholding international conventions on
protected ideas and with harmonizing na-
tional laws concerning such property.
Seealso:intellectualproperty
world monetary reserve assets (F3)
The total of the assets of all the countries
of the world, in the form of special
drawing rights, gold and reserve curren-
cies.
Seealso:reserveassets
world monetary system (F3)
The institutional mechanism for settling
intercountry indebtedness and for provid-
ing loans to increase the liquidity of
countries in need. After the
GOLD STAN-

DARD
, there was a world institutional gap
until the
BRETTON WOODS system was de-
vised. Although the arrangements for peg-
ging exchange rates ended in 1971, the
INTERNATIONAL MONETARY FUND and the
WORLD BANK remain as pillars of a world
system.
Seealso:EuropeanMonetarySystem
world stock market indices (G1) see
AppendixB
world systems perspective (O0)
A method of analysing economic develop-
ment which uses a structural approach to
put
FOREIGN AID in the context of being
part of the world economy and measures
that country’s relationship with the rest of
the world economy.
world trade (F1)
The sum total volume of exports or
imports of every national
ECONOMY. The
© 2002 Donald Rutherford
growth of trading within MULTINATIONAL
CORPORATIONS
, much of it measured at ARTI-
FICIAL TRANSFER PRICES
, has made it more

difficult to gain a precise idea of the value
of exports of particular countries. The
volume of world trade fluctuates accord-
ing to the state of major economies,
especially the USA, and grows at different
rates within particular trading blocs and
between them.
World Trade Organization (F1)
The successor to GATT inaugurated in
1995 and based in Geneva, Switzerland. It
administers the global rules of trade of a
multilateral trading system to facilitate
and to encourage world trade. It has over
140 member countries and covers more
than 90 per cent of world trade. Decisions
on trade disputes are settled consensually.
The WTO also administers trade agree-
ments and reviews national trade policies.
worst case consequence analysis (Q2)
A form of risk management in which
controlled experiments provide an aware-
ness of the consequences of an extreme
event. This is used as part of environmen-
tal controls.
writer (G1)
A
CALL seller in an option market who sells
OPTIONS against shares he or she already
owns in order to improve their perfor-
mance.

© 2002 Donald Rutherford
X
X-efficiency (D4)
LEIBENSTEIN’s concept of efficiency that re-
jects the technical efficiency notion of profit
maximizing and cost minimizing. He argued
that individual workers are free to choose
their effort level and interpret their own
jobs. The equilibrium position for a firm will
be when every individual is in his or her
‘inert area’, an effort point which, if moved
away from, would reduce utility. This level
of ‘efficiency’ and associated cost is com-
fortable for a firm’s individuals. Prices are
fixed using conventional formulae.
References
Leibenstein, H. (1976) Beyond Economic
Man: A New Foundation for Macroeco-
nomics, Cambridge, MA: Harvard Uni-
versity Press.
—— (1978) General X-Efficiency Theory
and Economic Development,NewYork
and London: Oxford University Press.
—— (1980) Inflation, Income Distribution
and X-Efficiency Theory, London: Croom
Helm; New York: Barnes & Noble.
Xenophon, 430–354 BC (B3)
A follower of Socrates before embarking
on military campaigns, including the ex-
pedition of Cyrus. The three works attrib-

uted to him most relevant to economics
are Ways and Means to Increase the
Revenues of Athens, perhaps the first work
on
PUBLIC FINANCE in which he argued for
state intervention to expand silver mining,
Oeconomicus which included a discussion
of the nature of wealth and income
differentials and Cyropaedia which ex-
plains that the
DIVISION OF LABOUR is limited
by the extent of the market.
Seealso:AncientGreeks;Aristotle;Plato
Xetra (G1)
The electronic cash market trading system
for securities of the Frankfurt exchange.
Both auctions and continuous trading are
used for dealing in over 5,000 equities and
over 10,000 warrants. Safety mechanisms
such as volatility interruptions are in force.
The trading platform of the iX interna-
tional exchanges.
X-form (L2)
A hybrid type of business enterprise that is
a mixture of the
H- and M-FORMS.
Seealso:U-form
References
Williamson, O.E. (1986) Economic Organi-
zation: Firms, Markets and Policy Control,

ch. 4, Brighton: Harvester Wheatsheaf.
© 2002 Donald Rutherford
Y
Yankeebid(D0)seesealedbidauction
Yankee bond (G1)
A bond issued in the US securities market
by a non-US concern.
yearling (G1)
A UK local government stock maturing in
a year.
Seealso:governmentbond
yellow dog contract (J5)
An individual employment contract
whereby a worker promises not to join a
TRADE (LABOR) UNION. This standard practice
of many US firms in the 1920s was used to
impede the growth of union membership.
It was outlawed by the
NORRIS–LA GUARDIA
ACT
.
yellow stripe price (G1)
A stock market price shown on a screen of
the
STOCK EXCHANGE AUTOMATED QUOTATION
SYSTEM
which refers to large BARGAINS of a
particular stock.
yield (D2, G0)
1 Return to an investment measured by

dividend or interest receivable divided
by price of that security.
2 The annual produce from cultivating a
piece of land.
Seealso:redemptionyield
yield curve (G0)
The relationship between the percentage
yield of a bond and the number of years to
its maturity. An inverse yield curve is
downward sloping, a positive yield curve
upward sloping and a flat yield curve
horizontal. In most cases the yield, deter-
mined in a secondary market, is for a
previously issued bond. The yield is also a
guide to the pricing of new bond issues.
The
TERM STRUCTURE OF INTEREST RATES
© 2002 Donald Rutherford
determines the curve, e.g. if short-term
rates are higher than long-term , there will
be an inverse yield curve.
Seealso:termstructureofinterestrates
yield gap (G0)
The
YIELD on equities minus the yield on
bonds. Inflation after 1959 depressed the
capital values of bonds, raising their yields
in both the UK and the USA: this created
a reverse yield that has fluctuated between
about 1 per cent and 9 per cent.

Young, Allyn Abbott, 1876–1929 (B3)
Educated at Hiram College, Ohio, and the
University of Wisconsin. His many aca-
demic appointments included professor-
ships at Stanford and, from 1913, at
Cornell. His wide-ranging articles included
demography and many aspects of applied
economics, public finance and antitrust
policy. He will long be remembered for
his immensely influential article on
IN-
CREASING RETURNS TO SCALE
that both ad-
vanced the theory of
ECONOMIC GROWTH and
challenged the Marshallian
THEORY OF THE
FIRM
. Tragically, he died relatively young
of influenza in London.
References
Young, A.A. (1928) ‘Increasing returns
and economic progress’, Economic Jour-
nal 38: 527–42.
yuppie, yuppy (J1)
A young urban professional. Most of
these aggressive young graduates are em-
ployed in financial centres such as New
York and London. These health-con-
scious workaholics firmly believe in free

market economics. Their high salaries
have made it possible for them to con-
tribute to the
GENTRIFICATION of inner city
areas.
© 2002 Donald Rutherford
Z
zaibatsu (L2)
A Japanese group of large companies
owned by a family-controlled holding
company.
Seealso:chaebol
zai teku (G0, M1)
Financial management (Japanese).
zakat (H2)
Under Islamic law, a tax on surplus
wealth, e.g. on buried treasure acquired
through little labour, or on a herd above a
certain size. The tax is levied to help the
poor and needy.
zero base budgeting (H6)
A method of governmental budgeting
which begins with an appraisal of all
spending projects on their merits and then,
by aggregation, produces a budget total. It
was intended, when it was introduced by
the Carter Administration in the USA in
the 1970s, to replace the traditional budget
method of deciding first on an expenditure
total and then allocating that sum among

different programmes. In practice, it is
questionable whether this method can be
implemented as project analysis is long,
costly and difficult – and not applicable to
all parts of a budget.
References
Sarant, P.C. (1978) Zero-base Budgeting in
the Public Sector: A Pragmatic Ap-
proach, Reading, MA: Addison-Wesley.
zero coupon bond (G1)
A bond bearing no interest. As the bond is
issued at a discount, it has a
REDEMPTION
YIELD
.
Seealso:junkbond
zero growth (E0, O4)
The characteristic of an economy in a
STATIONARY STATE. CLASSICAL ECONOMISTS
feared the movement of the economy to
stationarity, excepting John Stuart
MILL
who was willing to approve of no growth,
providing that there was a satisfactory
income distribution. In modern advanced
economies this has been suggested as a
goal on the grounds that growth of the
GROSS NATIONAL PRODUCT generates SOCIAL
COSTS
in the form of pollution, congestion

and more arduous work, as well as run-
ning down non-renewable resources too
rapidly. Zero growth is often expressed as
a condemnation of all growth rather than
an attack on particular undesirable eco-
nomic activities. However, changes to
more environmentally-friendly production
techniques make economic growth more
acceptable.
Seealso:ClubofRome
zero–infinity dilemma (Q2)
A problem in environmental economics
when the probability of damage is small
but the impact of a pollutant is potentially
large.
© 2002 Donald Rutherford
zero population growth (J1)
The goal of many twentieth-century dis-
ciples of
MALTHUS usually taking the form
of advocating birth control. In many West
European countries the use of contracep-
tive pills since the 1960s has brought the
natural rate of increase below the replace-
ment level.
Seealso:neo-Malthusians
zero priced (D0)
Free. This term enables the prices of
everything to be placed on a continuum
from zero to a considerable sum. Many

goods and services provided by the public
sector are given freely to consumers, e.g.
most of the health care provided by the
UK’s National Health Service. Although
goods can be free to a consumer, they are
not costless because of the scarcity of
factor inputs.
zero profit (D0)
The absence of
SUPERNORMAL PROFITS in the
long run, under conditions of
PERFECT COM-
PETITION
, as firms earn only NORMAL PROFITS
which are included in average costs.
zero-rated good (H2)
A good not subject to
VALUE-ADDED TAX.
Exemptions from value-added tax vary
from country to country but the principal
items excluded in some countries have
been food, clothing and educational mat-
erials.
zero real interest (E4)
A nominal rate of interest equal to the
rate of inflation of that country.
zero-sum game (C7)
Economic activities in which gains to the
winners equal losses to the losers. There
are many examples of these games, e.g. the

attempt of all major trading countries to
have export surpluses.
Zeuthen, Frederik Ludvig Baug, 1888–
1959 (B3)
Danish mathematical economist who
graduated from Copenhagen University in
1912 and was employed by the Danish
social security system from 1912 to 1930
before beginning his academic career. He
developed a theory of
COLLECTIVE BARGAIN-
ING
based upon the possible outcomes of
expected conflict, as perceived by manage-
ment and labour, and developed the the-
ory of
DUOPOLY by expanding the notion of
PRODUCT DIFFERENTIATION.
References
Zeuthen, F.L.B. (1930) Problems of Mono-
poly and Economic Welfare, London: G.
Routledge & Sons.
—— (1959) Economic Theory and Method,
Cambridge, MA: Harvard University
Press.
Zipf’s law (R1)
A linear relationship between the loga-
rithm of the largest cities and the loga-
rithm of those cities’ populations after
ranking the cities by size starting with the

largest. It is claimed to be universally true
and to reflect constant
RETURNS TO SCALE in
cities.
Seealso:Gibrat’slaw
References
Zipf, G. (1949) Human behaviour and the
principle of last effort, Cambridge, MA:
Addison-Wesley.
zombie (G3)
A company insolvent but continuing to
operate.
Seealso:overtrading
zonal pricing (D4, Q4)
The aggregation of
NODAL PRICES to pro-
duce the same prices over part of a system
such as electricity transmission.
zone of freedom (D0, L9)
A price range of the tariffs set by major
airlines. The ‘zone’ is the range below and
above a single reference level within which
an air tariff must be set.
zoning (Q3)
A local government method of regulating
land use. By the prohibition of certain
types of building in particular areas, land
© 2002 Donald Rutherford
values and the nature of economic activity
are affected.

Z-score (G0, M2)
A measure of the overall performance of a
company which takes the form of a weight-
ed index. The index is a + b  profitability
À c  gearing. In this expression, a is a
constant and b and c are coefficients
reflecting the relative importance of each
ratio. The score for an individual company
is compared with a test score to judge
whether the company is a financial failure
or a success.
© 2002 Donald Rutherford
Appendix A
Currencies of the world (F3)
Afghani: Afghanistan
A/Guilder: Netherlands Antilles
Australian dollar: Australia, Kiribati,
Nauru Islands, Tuvalu
Bahama dollar: Bahamas
Baht: Thailand
Balboa: Panama
Barbados dollar: Barbados
Belgian franc: Belgium
Ã
Belize dollar: Belize
Bermuda: Bermudian dollar
Bolivar: Venezuela
Boliviana: Bolivia
Brunei dollar: Brunei
Burundi franc: Burundi

Canadian dollar: Canada
Cedi: Ghana
CFA franc: Benin, Burkina Faso, Camer-
oon, Central African Republic, Chad,
Congo, Co
ˆ
te d’Ivoire, Equatorial Gui-
nea, French Community/Africa, Gabon,
Guinea-Bissau, Mali Republic, Niger
Republic, Senegal, Togo Republic
CFP franc: French Pacific Islands
Chilean peso: Chile
CI dollar: Cayman Islands
Colombian peso: Colombia
Colon: Costa Rica, El Salvador
Comoros franc: Comoros
Congo franc: Congo Democratic Republic
Cuban peso: Cuba
CV escudo: Cape Verde
Cyprus pound: Cyprus
Dalasi: Gambia
Danish krone: Denmark, Faroe Islands,
Greenland
Denar: Macedonia
Deutschmark: Germany
Ã
Dinar: Algeria, Bahrain, Sudan Republic,
Tunisia
Dirham: Morocco, United Arab Emirates
Djibouti franc: Djibouti

Dobra: Sa˜o Tome
´
Dominican peso: Dominican Republic
Dong: Vietnam
Drachma: Greece
Ã
Dram: Armenia
East Caribbean dollar: Antigua, Dominica,
Grenada, Montserrat, St Christopher,
St Lucia, St Vincent
Egyptian pound: Egypt
Escudo: Azores, Madeira, Portugal
Ã
Ethiopian birr: Ethiopia
Falkland pound: Falkland Islands
Fiji dollar: Fiji Islands
Florin: Aruba
Forint: Hungary
French franc: Andorra, France
Ã
,
Guadeloupe, Monaco, Re
´
union Island,
St Pierre & Miquelon
Gibraltar pound: Gibraltar
Gold cordoba: Nicaragua
Gourde: Haiti
Guarani: Paraguay
Guilder: Netherlands

Ã
Guinea franc: Guinea
Guyanese dollar: Guyana
Hong Kong dollar: Hong Kong
© 2002 Donald Rutherford
Hryvna: Ukraine
Icelandic krona: Iceland
Indian rupee: India
Iraqi dinar: Iraq
Jamaican dollar: Jamaica
Jordanian dinar: Jordan
Kenya shilling: Kenya
Kina: Papua New Guinea
Koruna: Czech Republic, Slovakia
Krona: Sweden
Kroon: Estonia
Kuna: Croatia
Kuwaiti dinar: Kuwait
Kwacha: Malawi, Zambia
Kyat: Burma
Lari: Georgia
Lats: Latvia
Lebanese pound: Lebanon
Lek: Albania
Lempira: Honduras
Leone: Sierra Leone
Leu: Moldavia, Romania
Lev: Bulgaria
Liberian dollar: Liberia
Libyan dinar: Libya

Lilangeni: Swaziland
Lira: Italy
Ã
, San Marino, Turkey, Vatican
Litas: Lithuania
Local franc: French Guiana, Martinique
Luxemburg franc: Luxemburg
Ã
Maltese lira: Malta
Maluti: Lesotho
Manat: Azerbaijan
Marka: Bosnia Herzegovina
Markka: Finland
Ã
Mauritius rupee: Mauritius
Metical: Mozambique
Mexican peso: Mexico
MG franc: Madagascar
Naira: Nigeria
Namibian dollar: Namibia
Nepalese rupee: Nepal
New dinar: Yugoslavia
New kip: Laos
New shilling: Uganda
New sol: Peru
New Zealand dollar: New Zealand, Pit-
cairn Islands
Ngultrum: Bhutan
Norwegian krone: Norway
Ouguiya: Mauritania

Pa’anga: Tongo Islands
Pakistan rupee: Pakistan
Pataca: Macao
Peso: Argentina, Philippines
Peso Uruguayo: Uruguay
Pound: St Helena, United Kingdom
Pound sterling: Pitcairn Islands
Pula: Botswana
Punt: Irish Republic
Ã
Quetzal: Guatemala
Rand: South Africa
Readj kwanza: Angola
Real: Brazil
Renminbi: China
Rial: Iran, Yemen Republic
Rial Omani: Oman
Riel: Cambodia
Ringgit: Malaysia
Riyal: Qatar, Saudi Arabia
Rouble: Belarus, Russia
Rufiya: Maldive Islands
Rupiah: Indonesia
Rwanda franc: Rwanda
Schilling: Austria
Ã
SDR: Special Drawing Right (IMF)
Seychelles rupee: Seychelles
Shekel: Israel
Shilling: Somali Republic, Tanzania

Singapore dollar: Singapore
Solomon Islands dollar: Solomon Islands
Som: Kyrgyzstan
Spanish peseta: Andorra, Balearic Islands,
Canary Islands, Spain
Ã
, Spanish ports
in North Africa
Sri Lanka rupee: Sri Lanka
Sum: Uzbekistan
Surinam guilder: Surinam
Swiss franc: Liechtenstein, Switzerland
Syrian pound: Syria
Taiwanese dollar: Taiwan
Taka: Bangladesh
Tala: Western Samoa
Tenge: Kazakhstan
Tolar: Slovenia
Trinidadian dollar: Trinidad & Tobago
Tugrik: Mongolia
US dollar: Ecuador, Guam, Puerto Rico,
© 2002 Donald Rutherford
Turks and Caicos, United States of
America, Virgin Islands
Vatu: Vanuatu
Won: North Korea, South Korea
Yen: Japan
Zimbabwian dollar: Zimbabwe
Zloty: Poland
Notes:

Ã
Currency officially replaced by the euro
on 1 January 2002.
Some currencies with the same name have
different values.
© 2002 Donald Rutherford
Subject classifications
A General economics and teaching
A1 General economics
A2 Teaching of economics
B Methodology and history of economic
thought
B0 General
B1 History of economic thought to
1925
B2 History of economic thought
since 1925
B3 History of economic thought:
individuals
B4 Economic methodology
C Mathematical and quantitative methods
C0 General
C1 Econometric and statistical
methods: general
C2 Econometric methods: single
equation models
C3 Econometric methods: multiple
equation models
C5 Econometric modelling
C6 Mathematical methods and

programming
C7 Game theory and bargaining
theory
C8 Data collection and data
estimation methodology;
computer programmes
C9 Design of experiments
D Microeconomics
D0 General
D1 Household behaviour and family
economics
D2 Production and organisations
D3 Distribution
D4 Market structure and pricing
D5 General equilibrium and
disequilibrium
D6 Economic welfare
D7 Analysis of collective
decision-making
D8 Information and uncertainty
D9 Intertemporal choice and growth
E Macroeconomics and monetary
economics
E0 General
E1 General aggregative models
E2 Consumption, saving, produc-
tion, employment and investment
E3 Prices, business fluctuations and
cycles
E4 Money and interest rates

E5 Monetary policy, central bank-
ing, and the supply of money and
credit
E6 Macroeconomic aspects of
public finance, macroeconomic
policy and general outlook
F International economics
F0 General
These classifications are as used in The Economic Journal (the journal of The Royal
Economic Society) and the Journal of Economic Literature.
© 2002 Donald Rutherford
F1 Trade
F2 International factor movements
F3 International finance
F4 Macroeconomic aspects of
international trade and finance
G Financial economics
G0 General
G1 General financial markets
G2 Financial institutions and ser-
vices
G3 Corporate finance and
governance
H Public economics
H0 General
H1 Structure and scope of
government
H2 Taxation and subsidies
H3 Fiscal policies and the behaviour
of economic agents

H4 Publicly provided goods
H5 National government expendi-
tures and related policies
H6 National budget, deficit and debt
H7 State and local government: in-
tergovernmental relations
I Health, education and welfare
I1 Health
I2 Education
I3 Welfare and poverty
J Labour and demographic economics
J0 General
J1 Demographic economics
J2 Time allocation, work behaviour
and employment determination
J3 Wages, compensation and labour
costs
J4 Particular labour markets
J5 Labour management relations:
trade unions and collective
bargaining
J6 Mobility, unemployment and
vacancies
J7 Discrimination
K Law and economics
K0 General
K2 Regulation and business law
K4 Legal procedure, the legal system
and illegal behaviour
L Industrial organisation

L0 General
L1 Market structure, firm strategy
and market performance
L2 Firm objectives, organisation and
behaviour
L3 Non-profit organisations and
public enterprise
L4 Anti-trust policy
L5 Regulation and industrial policy
L6 Industry studies: manufacturing
L7 Industry studies: primary
products and construction
L8 Industry studies: services
L9 Industry studies: utilities and
transport
M Business administration and business
economics; marketing; accounting
M0 General
M1 Business administration
M2 Business economics
M3 Marketing and advertising
M4 Accounting
N Economic history
N0 General
N1 Macroeconomics: growth and
fluctuations
N2 Financial markets and
institutions
N3 Labour, demography, education,
income and wealth

N4 Government, law and regulation
N5 Agriculture, natural resources
and extractive industries
N6 Manufacturing and construction
N7 Transport, trade, energy and
other services
O Economic development
O0 General
O1 Economic development
O2 Development, planning and
policy
O3 Technological change
O4 Economic growth and aggregate
productivity
O5 Economy-wide country studies
P Economic systems
P0 General
P1 Capitalist systems
P2 Socialist systems
P3 Socialist institutions
© 2002 Donald Rutherford
P4 Other economic institutions
P5 Comparative economic systems
Q Agricultural and natural resource
economics
Q0 General
Q1 Agriculture
Q2 Renewable resources and conser-
vation: environmental
management

Q3 Non-renewable resources and
conservation
Q4 Energy
R Urban, rural and regional economics
R0 General
R1 General spatial economics
R2 Household analysis
R3 Production analysis and firm
location
R4 Transport
R5 Regional government analysis
Z Other topics
Z1 Cultural economics
A General economics and teaching
A1 General economics
American Economic Association
‘dismal science’
economic anthropology
economic journals
economics
economic specificity
economyth
endowment
human scale economics
Institute of Economic Affairs
institutional economics
mono-economics
normative economics
organizational economics
Panglossian economics

political economy
positive economics
postmodern economics
radical economics
Royal Economic Society
A2 Teaching of economics
economics
B Methodology and history of economic
thought
B0 General
anarchism
Islamic economics
monetarism
vulgar economists
B1 History of economic thought to 1925
Ancient Greeks
Austrian School
Cambridge School
central place theory
classical dichotomy
classical economics
continuity thesis
Currency School
female economists
Free Banking School
French Circuit School
German Historical School
iron law of wages
Lausanne School
Manchester School

marginalists
mercantilism
needs of trade
neoclassical economics
neo-Malthusians
Physiocrats
real bills doctrine
Stockholm School
utilitarianism
value in use
wages fund theory
Wealth of Nations
B2 History of economic thought since 1925
African–American economists
Austrian School
Cambridge Circus
Cambridge Economic Policy Group
Cambridge School
Chicago School
Cowles Commission
female economists
French Circuit School
Gandhian economics
© 2002 Donald Rutherford
German Historical School
instant monetarism
libertarian economics
neo-Keynesians
neo-Marxists
neo-mercantilism

neo-Ricardian theory
New Cambridge economics
new classical economics
new macroeconomics
New Right
post-Keynesians
Reaganomics
Regulation School
Stockholm School
supply-side economics
theonomy
transaction cost economics
B3 History of economic thought:
individuals
Abramovitz, Moses, 1912–
Akerlof, George Arthur, 1940–
Allais, Maurice, 1911–
Anderson, James, 1739–1808
Aquinas, St Thomas, 1225–74
Aristotle, 384–22 BC
Arrow, Kenneth Joseph, 1921–
Ayres, Clarence Edwin, 1891–1972
Bagehot, Walter, 1826–77
Bailey, Samuel, 1791–1870
Bain, Joe Staten, 1912–
Baran, Paul, 1910–64
Barbon, Nicholas, c.1640–98
Bauer, Peter Thomas, 1915–
Baumol, William Jack, 1922–
Bayes, Thomas, 1702–61

Becker, Gary Stanley, 1930–
Bentham, Jeremy, 1748–1832
Bergson, Abram, 1914–
Beveridge, William Henry, 1879–1963
Blaug, Mark, 1927–
Bo
¨
hm–Bawerk, Eugen von, 1851–1914
Boisguilbert, Pierre Le Pesant de,
1646–1714
Boulding, Kenneth Ewart, 1910–92
Buchanan, James McGill, 1919–
Burns, Arthur Frank, 1904–87
Cantillon, Richard, c.1680–c.1734
Cassel, Karl Gustav, 1866–1945
Chamberlin, Edward Hastings,
1899–1967
Chenery, Hollis Burnley, 1918–
Child, Sir Francis, 1684?–1740
Clark, Colin Grant, 1905–89
Clark, John Bates, 1847–1938
Coase, Ronald Harry 1910–
Commons, John Rogers, 1862–1945
Cournot, Antoine Augustin, 1801–77
Deane, Phyllis Mary, 1918–
Debreu, Gerard, 1921–
Dobb, Maurice Herbert, 1900–76
Domar, Evsey David, 1914–
Douglas, Paul Howard, 1892–1976
Dunlop, John Thomas, 1914–

Dupuit, Arse
`
ne Jules Etienne Juve
´
nal,
1804–66
Edgeworth, Francis Ysidro, 1845–1926
Engel, Ernst, 1821–96
Engels, Friedrich, 1820–95
Feldstein, Martin, 1939–
Fisher, Irving, 1867–1947
Fogel, Robert William, 1926–
Fourier, Charles, 1772–1837
Friedman, Milton, 1912–
Frisch, Ragnar Anton Kittil,
1895–1973
Galbraith, John Kenneth, 1908–
George, Henry, 1839–97
Giffen, Sir Robert, 1837–1910
Gossen, Hermann Heinrich, 1810–58
Haavelmo, Trygve, 1911–
Haberler, Gottfried, 1900–1995
Hahn, Frank Horace, 1925–
Hansen, Alvin Harvey, 1887–1975
Harrod, Sir Roy Forbes, 1900–78
Harsanyi, John Charles, 1920–2000
Hawtrey, Sir Ralph, 1879–1971
Hayek, Friedrich A. von, 1899–1992
Heckman, James Joseph 1944–
Heckscher, Eli Filip, 1879–1952

Hicks, Sir John Richard, 1904–89
Hirschman, Albert Otto, 1915–
Hume, David, 1711–76
Isard, Walter, 1919–
Jevons, William Stanley, 1835–82
Johnson, Harry Gordon, 1923–79
Kahn, Richard Ferdinand, 1905–89
Kaldor, Nicholas 1908–86
Kalecki, Michal, 1899–1970
Kantorovich, Leonid Vitalievich,
1912–
Keynes, John Maynard 1883–1946
Klein, Lawrence R., 1920–
Knight, Frank Hyneman, 1885–1973
Koopmans, Tjalling Charles 1910–84
Kornai, Janos, 1928–
Krueger, Anne Osborn, 1934–
Kuznets, Simon S., 1901–85
Lachmann, Ludwig, 1906–90
© 2002 Donald Rutherford
Lauderdale (James Maitland), Eighth
Earl of, 1759–1830
Law, John, 1671–1729
Lelbenstein, Harvey, 1922–92
Leontief, Wassily W., 1906–99
Lerner, Abba Ptachya, 1903–82
Lewis, William Arthur, 1915–91
Liberman, Yevsei, 1912–
Lipsey, Richard George, 1928–
List, Friedrich, 1789–1846

Loyd, Samuel Jones, 1796–1883
Lucas, Robert E., Jr, 1937–
Lundberg, Erik Filip, 1907–89
Luxemburg, Rosa, 1870–1919
Machlup, Fritz, 1928–83
Malinvaud, Edmond, 1923–
Malthus, Thomas Robert, 1766–1834
Mandeville, Bernard, 1670–1733
Marcet, Jane, 1769–1858
Markovitz, Harry Max, 1927–
Marshall, Alfred, 1842–1924
Martineau, Harriet, 1802–76
Marx, Karl Heinrich, 1818–83
McFadden, Daniel L., 1937–
Meade, James E., 1907–96
Menger, Carl, 1840–1921
Merton, Robert C., 1944–
Mill, James, 1773–1836
Mill, John Stuart, 1806–73
Miller, Merton, 1923–2000
Minsky, Hyrnan Philip, 1919–96
Mirrlees, James A., 1936–
Mises, Ludwig Edler von, 1881–1973
Mitchell, Wesley Clair, 1874–1948
Modigliani, Franco, 1918–
Morgenstern, Oskar, 1902–77
Morishima, Michio, 1923–
Mun, Thomas, 1571–1641
Mundell, Robert A., 1932–
Myrdal, Gunnar, 1898–1987

Nash, John Forbes, 1928–
Nobel Prize for Economics
North, Douglass Cecil, 1920–
Nozick, Robert, 1938–2002
Ohlin, Bertil, 1899–1979
Okun, Arthur M., 1928–80
Owen, Robert, 1771–1858
Pareto, Vilfredo, 1848–1923
Patinkin, Don, 1922–97
Penrose, Edith Tilton, 1914–96
Petty, Sir William, 1623–87
Phillips, Alban William Housego,
1914–75
Pigou, Arthur Cecil, 1877–1959
Plato, 428/7–348/7 BC
Polanyi, Karl, 1886–1964
Prebisch, Rau
´
l D., 1901–86
Quesnay, Franc¸ois, 1694–1774
Reid, Margaret, 1896–1991
Ricardo, David, 1772–1823
Robbins, Lionel, 1898–1984
Robertson, Dennis Holme, 1890–1963
Robinson, Joan Violet, 1903–83
Rostow, Walt Whitman, 1916–
Saint-Simon, Claude-Henri de
Rouvroy de, 1760–1825
Samuelson, Paul Anthony, 1915–
Say, Jean Baptiste, 1767–1832

Scholes, Myron S., 1941–
Schultz, Theodore William, 1902–
Schumacher, Ernst Friedrich, 1911–77
Schumpeter, Joseph Alois, 1883–1950
Schwartz, Anna Jacobson, 1915–
Scitovsky, Tibor, 1910–
Selten, Reinhard, 1930–
Sen, Amartya K, 1933–
Senior, Nassau William, 1790–1864
Shackle, George Lennox Sharman,
1903–92
Sharpe, William, 1934–
Simon, Herbert Alexander, 1916–
Simons, Henry Calvert, 1899–1946
Slutsky, Evgeny Evgenievich,
1880–1948
Smith, Adam, 1723–90
Solow, Robert M., 1924–
Spence, Andrew Michael, 1943–
Sraffa, Piero, 1898–1983
Stigler, George Joseph, 1911–91
Stiglitz, Joseph Eugene 1943–
Stone, John Richard Nicholas, 1913–
Thornton, Henry, 1760–1815
Thu
¨
nen, Johann Heinrich von,
1783–1850
Tinbergen, Jan, 1903–94
Tobin, James, 1918–2002

Torrens, Robert, 1780–1864
Turgot, Anne-Robert Jacques, 1727–81
Vanek, Jaroslav, 1930–
Veblen, Thorstein Bunde, 1857–1929
Vickrey, William Spencer, 1914–96
Viner, Jacob, 1892–1970
von Neumann, John, 1903–57
Walras, Marie Esprit Le
´
on, 1834–1910
Wicksell, Knut, 1861–1926
Williamson, Oliver Eaton, 1932–
Wootton, Barbara, 1897–1988
Xenophon, 430–354 BC
Young, Allyn Abbott, 1876–1929
© 2002 Donald Rutherford
Zeuthen, Frederik Ludvig Baug, 1888–
1959
B4 Economic methodology
economic methodology
economic paradigm
economics as rhetoric
marginalism
Marshallian methodology
research programme
C Mathematical and quantitative methods
C0 General
butterfly effect
Cowles Commission
power law

C1 Econometric and statistical methods:
general
analysis of variance
arc elasticity
arithmetic mean
autocorrelation
average
backtesting
Bayesian method
bimodal frequency curve
boundary constraint
Box–Jenkins
breakeven analysis
breakeven pricing
bunch map
catastrophe theory
central limit theorem
chi-squared distribution
choice variable
classical econometrics
coefficient of correlation
coefficient of determination
coefficient of multiple correlation
coefficient of multiple determination
coefficient of variation
confidence interval
confidence level
confluence analysis
contingency table
corner solution

correlation
cost–benefit analysis
critical value
cross price elasticity of demand
current prices
cyclical variations
data-mining
decile
degrees of freedom
diffusion index
distributional/social weights
disturbance term
dummy variable
Durbin–Watson statistic
econometrics
efficient estimator
error
exogenous variable
extremum
F test
frequency curve
frequency distribution
frequency polygon
generalized least squares
geometric mean
Gerschenkron effect
Gini coefficient
Granger causality
harmonic mean
heteroscedasticity

heuristic
histogram
homoscedasticity
identification problem
index number
input–output analysis
interval estimate
J-shaped frequency curve
Kalman filter
kurtosis
lagged variable
Laspeyres index
least squares method
level of significance
linear programming
linear regression
Lorenz curve
loss function
lower quartile
Markov chain model
maximum likelihood estimator
mean
mean deviation
median
mode
moments
moving averages
multicollinearity
multimodal frequency curve
multiple correlation

multivariate analysis
noise
© 2002 Donald Rutherford
non-linear correlation
normal distribution
null hypothesis
one-tailed test
outlier
parameter
percentile
point elasticity
point estimate
probability
probable error
product moment formula
random variations
range
rank correlation
reduced form equation
reverse J-shaped frequency curve
sample
scatter diagram
seasonal adjustment
selection bias
semi-interquartile range
signal extraction
significance test
size distribution
skewed frequency curve
skewness

Spearman’s rank correlation
coefficient
specification
standard deviation
standard error of estimate
statistical population
statistics
stochastic process
stochastic term
Student’s t distribution
symmetrical frequency curve
test statistic
three-stage least squares
time series
trend
two-stage least squares
two-tailed test
Type I error
Type II error
unbiased estimator
unimodal distribution
upper quartile
U-shaped frequency curve
variance
weight
white noise
C2 Econometric methods: single equation
models
econometrics
C3 Econometric methods: multiple

equation models
aggregation problem
econometrics
recursive system
C5 Econometric modelling
ARMA
Bayesian econometrics
change point analysis
Cobb–Douglas production function
cobweb
constant elasticity of substitution
production function
economic forecasting
EPA
error-correction model
event study
INTERLINK
large-scale models
linkage models
logit model
MCM
non-parametric model
pattern model
probit model
soft modelling
Tobit model
top-down linkage model
Treasury model
vector autoregression
vector autoregressive model

C6 Mathematical methods and
programming
arithmetic progression
continuous variable
derivative
difference equation
differentiation
discrete variable
domain
exogenous variable
extremum
fractal Brownian motion
geometric progression
homogeneous function
homothetic function
impulse response function
mathematical economics
optimal control
© 2002 Donald Rutherford
C7 Game theory and bargaining theory
Bayesian equilibrium
evolutionary game theory
fair division problem
flat pay-off
game theory
hold-up problem
lottery
martingale
maximin
minimax

Nash bargaining
Nash equilibrium
non-zero-sum game
one-shot game
opportunistic behaviour
pay-off
prisoners’ dilemma
rank-order tournament
reaction function
regret
repeated game
saddle point
sequential game
Shapley value
St Petersburg paradox
strong equilibrium
trembling-hand perfect equilibrium
variable-sum game
von Neumann–Morgenstern stable set
winner’s curse
zero-sum game
C8 Data collection and data estimation
methodology; computer programmes
automatic neural network modelling
Bellman’s equation
bidding technique
Blue Book
cluster analysis
Consumer Expenditure Survey
cross-section data

data
economic indicators
empirics
extreme value theory
Family Expenditure Survey
General Household Survey
longitudinal data
microsimulation model
panel data
raw data
speculative price data
time budget survey
time series
C9 Design of experiments
bandit problem
experimental economics
Monte Carlo methods
simulation model
D Microeconomics
D0 General
accession tax
adjustment cost
adjustment speed
adverse selection
agency cost
all-pay auction
altruism
arc elasticity
asset
asymmetric information

auction
average incremental cost
average total cost
basic commodity
behaviour line
Bernoulli hypothesis
bid
bounded rationality
budget constraint
bundling
capacity utilization
capital
cardinal utility
certainty equivalent
ceteris paribus
change in demand or supply
chaos theory
charge
Choquet expected utility
circulating capital
clearing
clearing market
cognitive consonance
cognitive dissonance
commodity
common cost
complement
complexity theory
compliance cost
composite commodity

concentration economy
Condorcet criterion
constant prices
consumer durable
© 2002 Donald Rutherford
contingent commodity
contingent valuation
contract curve
contracting
core
cross price elasticity of demand
decision cycle
demand
demand curve
depletable externality
derived demand
devalorization
differentiated good
direct cost
direct utility function
disappointment aversion
discounting
discount rate
disequilibrium
disequilibrium economics
disutility
economic agent
economic devolution
economic efficiency
economic good

economic man
economic model
economism
Edgeworth box
eigenprices
elasticity
elasticity of a factor of production
elasticity of demand
elasticity of expectations
elasticity of substitution
elasticity of supply
employment
endogenous variable
envelope curve
equilibrium
equilibrium price
excess capacity
excess demand
excess supply
exchange
exclusion principle
exit–voice
expectations
expected utility
experience good
explicit contract
explicit cost
external economy of scale
externality
extrapolative expectations

factor cost
factor of production
felicific calculus
final good
fixed cost
fixprice
flexprice
free good
fungible asset
future
future goods
Giffen good
Giffen paradox
goal equilibrium
good
hard commodity
hazard
hedonic price
hiding hand
hold-up
homo economicus
homogeneous good
homo sovieticus
implicit cost
incentive compatible
income
income and substitution effects
income–consumption curve
income elasticity of demand
income–offer curve

incomplete contract
indifference curve
indirect cost
indivisibility
inducement good
inelasticity
inferior good
insurance
intangible wealth
intellectual property
interest risk
intermediate good
internal economy of scale
interpersonal utility comparisons
inverse elasticity rule
invisible hand
isocost
isolated market equilibrium
Japanese auction
joint cost
just price
labour disutility theory
labour theory of value
law of satiable wants
law of value
© 2002 Donald Rutherford