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In an economic model, an exogenous change is one that comes from outside the model and is unexplained by the model. Such changes of an economic model from outside factors can include the influence of technology, in which this had previously been noted as an exogenous factor, but has rather been noted as a factor that can depict economic forces as a whole. [1]
An economic theory that defines wealth by the amount of precious metals owned. [48] business cycle. Also called the economic cycle or trade cycle. The downward and upward movement of gross domestic product (GDP) around its long-term growth trend. [49] The length of a business cycle is the period of time containing a single boom and contraction ...
This causes a change in the distribution of income, the nature of the various capital goods demanded, and thus a change in their prices. This causes a change in the value of K (as discussed above). So, again, the rate of return on K (i.e., r ) is not independent of the measure of K , as assumed in the neoclassical model of growth and distribution.
In economics, the Jevons paradox (/ ˈ dʒ ɛ v ə n z /; sometimes Jevons effect) occurs when technological advancements make a resource more efficient to use (thereby reducing the amount needed for a single application); however, as the cost of using the resource drops, if the price is highly elastic, this results in overall demand increases ...
Degrowth is an academic and social movement critical of the concept of growth in gross domestic product as a measure of human and economic development. [1] [2] [3] The idea of degrowth is based on ideas and research from economic anthropology, ecological economics, environmental sciences, and development studies.
The somatic mutation theory of ageing states that accumulation of mutations in somatic cells is the primary cause of aging. A comparison of somatic mutation rate across several mammal species found that the total number of accumulated mutations at the end of lifespan was roughly equal across a broad range of lifespans. [16]
The relation between theory and facts is, however, not simple. Theory … must always be a priori to the observations of facts. Indeed, facts as part of scientific knowledge have no existence outside such a frame. … If theory is thus a priori, it is, on the other hand, a first principle of science that facts are sovereign.
The concept of Hicks neutrality was first put forth in 1932 by John Hicks in his book The Theory of Wages. [1] A change is considered to be Hicks neutral if the change does not affect the balance of labor and capital in the products' production function. More formally, given the Solow model production function = (,),