Glossary - Construction Economics: A New Approach - page 316

transition economies Refers to the economies of the 25 countries in Eastern Europe
and the former Soviet Union that are moving from a centrally planned to
a market system. The term, however, can be used less strictly to refer to any
economy changing its system of resource allocation.
travel cost method A technique used to identify the price of an externality. The
central premise involves estimating how much people are willing to pay to travel
in order to experience an environmental asset.
unit elastic demand If a percentage change in price leads to an identical percentage
change in demand, then the product has an elasticity of unity - that is, an
elasticity of one.
unit elastic supply A property of the supply curve where the quantity supplied
changes exactly in proportion to changes in price. In this hypothetical situation,
revenue is invariant to price changes.
u-value A traditional measurement of heat loss. As the u-value coefficient moves
nearer to zero the insulation quality of the material being measured improves.
In other words, as the u-value of a wall lowers there is less heat lost through the
fabric of the building.
value management A term used to embrace all activities and techniques used to
establish where costs are being incurred and where value could be added. In
effect, value management is a process that should achieve better value for money
for the client. It is commonly abbreviated to VM.
variable costs Costs that vary with the rate of production. Examples include wages
paid to workers, the costs of materials, and so on.
vendor A seller - especially one who sells land and property.
vertical equity The concept behind measures to achieve social justice or fairness by
providing benefits targeted at people with specific needs. The idea that underpins
policies such as means-tested benefits and taxing the rich more heavily than the
poor.
voluntary instruments This term has emerged as the green agenda has developed,
and it refers to the various assessment schemes for buildings and management.
Ironically, the common thread is that these schemes always have to be 'paid for'
as legislation has not been introduced to make them compulsory.
wage-price spiral An inflationary process in which incomes and retail prices follow
each other in an upward direction (see Figure 14.5 ).
wages councils Bodies set up by the government to determine the pay of those in
occupations that are traditionally poorly rewarded. At their peak these bodies
regulated wages for more than one million employees in trades such as retailing
and agriculture. Wages councils were abolished in the UK in 1993.
x-inefficiency Describes the organisational slack that results in higher unit costs than
would occur within a more competitive marketplace.