AARCH augmented autoregressive conditional heteroscedasticity AC advanced country ACAS Advisory, Conciliation and Arbitration Service ACH automated clearinghouse ACM Andean Common Market; Arab Common Market ACP African, Caribbean and Pacific ACRS Accelerated Cost Recovery System ACT advanced corporation tax AD anti-dumping ADAS aggregate demand-aggregate supply ADB Asian Development Bank ADR American Depository Receipt AEA American Economic […]

AAA To adaptive expectations (Economics)

AAA The top credit rating of the securities issued by corporations and companies, as judged by the US rating agency Standard & Poor. This rating is based on the view that default is likely to be minimal. ability to pay 1 The principle of taxation that persons with equal incomes and equal capacity to pay […]

Adding-up controversy To agency theory (Economics)

adding-up controversy A dispute concerning ‘solutions’ to the problem of ensuring that the total amount of income going to factors of production is equal to the national income. From P.H. Wicksteed’s An Essay in the Coordination of the Laws of Distribution (1894) onwards, many attempts to solve the problem have been limited to the special […]

Agent bank To antitrust (Economics)

agent bank A bank which arranges with a consortium of banks a credit facility for a borrower. agglomeration diseconomy An external diseconomy of scale caused by the growth of a town or city. For example, the population growth of a city often results in increased pollution and congestion. agglomeration economy An external economy of scale […]

Apprenticeship To Ayres, Clarence Edwin, 1891-1972 (Economics)

apprenticeship A period of training in a firm which enables a trainee to learn a craft under the supervision of a skilled worker. The length of the apprenticeship varies from trade to trade and country to country. Adam smith noted that in ancient times the period was commonly seven years, even in universities for studying […]

Baby-boom period To Baran, Paul, 1910-64 (Economics)

baby-boom period The 1970s when persons who were born in the high-birth-rate period following the Second World War became adults. baby-bust generation The 1990s and later when there were fewer young adults. back testing A simulation of actual trading in securities using past data. backwardation 1 The charge made on a stock exchange for carrying […]

Barbell To behavioural economics

barbell A stock market investment strategy of investing in bonds with mainly very short-or long-term maturities. Barber boom The 1971-4 period in the UK when Anthony Barber as Chancellor of the Exchequer over-stimulated the economy with inevitable inflationary consequences. in the property market, in particular, there was appreciable inflation, e.g. between 1970 and 1973 commercial […]

Bliss point To Buddhist economics

bliss point An optimal combination of private and public goods. This combination is derived from a social welfare function. In the figure W1, W2 and W3 are different social welfare functions, BB is a grand utility maximization frontier, P is the bliss point, Ux and Uy are ordinal preference functions and W = W(Ux, Uy) […]

Behavioural finance To Blaug, Mark, 1927 (Economics)

behavioural finance The study of financial markets making use of the ideas of investor sentiment and limited arbitrage. Research of this kind examines irrationality in markets. behaviour line An indifference curve. Beige Book A report of US regional economic conditions published by the federal reserve eight times a year. It is based on anecdotal evidence […]

C To cash-in-advance constraint (Economics)

C 1 Total consumer expenditure of a national economy. This is shown as a function of national income in the consumption FUNCTION. 2 The lowest quality of security, according to Standard & Poor, as such securities have no interest paid on them. cable Transactions between the dollar and sterling in foreign exchange trading. cabotage 1 […]