An eponymous dictionary of economics: a guide to laws and theorems named after economists

309 Pages·2004·1.12 MB·English

by  Julio Segura

An Eponymous Dictionary of Economics

An Eponymous Dictionary
of Economics
A Guide to Laws and Theorems Named after Economists
Edited by
Julio Segura
Professor of Economic Theory, Universidad Complutense, Madrid, Spain,
and
Carlos Rodríguez Braun
Professor of History of Economic Thought, Universidad Complutense,
Madrid, Spain
Edward Elgar
Cheltenham, UK • Northampton, MA, USA
© Carlos Rodríguez Braun and Julio Segura 2004
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical or
photocopying, recording, or otherwise without the prior permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing, Inc.
136 West Street
Suite 202
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
ISBN 1 84376 029 0 (cased)
Typeset by Cambrian Typesetters, Frimley, Surrey
Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall
Contents
List of contributors and their entries xiii
Preface xxvii
Adam Smith problem 1
Adam Smith’s invisible hand 1
Aitken’s theorem 3
Akerlof’s ‘lemons’ 3
Allais paradox 4
Areeda–Turner predation rule 4
Arrow’s impossibility theorem 6
Arrow’s learning by doing 8
Arrow–Debreu general equilibrium model 9
Arrow–Pratt’s measure of risk aversion 10
Atkinson’s index 11
Averch–Johnson effect 12
Babbage’s principle 13
Bagehot’s principle 13
Balassa–Samuelson effect 14
Banach’s contractive mapping principle 14
Baumol’s contestable markets 15
Baumol’s disease 16
Baumol–Tobin transactions demand for cash 17
Bayes’s theorem 18
Bayesian–Nash equilibrium 19
Becher’s principle 20
Becker’s time allocation model 21
Bellman’s principle of optimality and equations 23
Bergson’s social indifference curve 23
Bernoulli’s paradox 24
Berry–Levinsohn–Pakes algorithm 25
Bertrand competition model 25
Beveridge–Nelson decomposition 27
Black–Scholes model 28
Bonferroni bound 29
Boolean algebras 30
Borda’s rule 30
Bowley’s law 31
Box–Cox transformation 31
Box–Jenkins analysis 32
Brouwer fixed point theorem 34
v
vi Contents
Buchanan’s clubs theory 34
Buridan’s ass 35
Cagan’s hyperinflation model 36
Cairnes–Haberler model 36
Cantillon effect 37
Cantor’s nested intervals theorem 38
Cass–Koopmans criterion 38
Cauchy distribution 39
Cauchy’s sequence 39
Cauchy–Schwarz inequality 40
Chamberlin’s oligopoly model 41
Chipman–Moore–Samuelson compensation criterion 42
Chow’s test 43
Clark problem 43
Clark–Fisher hypothesis 44
Clark–Knight paradigm 44
Coase conjecture 45
Coase theorem 46
Cobb–Douglas function 47
Cochrane–Orcutt procedure 48
Condorcet’s criterion 49
Cournot aggregation condition 50
Cournot’s oligopoly model 51
Cowles Commission 52
Cox’s test 53
Davenant–King law of demand 54
Díaz–Alejandro effect 54
Dickey–Fuller test 55
Director’s law 56
Divisia index 57
Dixit–Stiglitz monopolistic competition model 58
Dorfman–Steiner condition 60
Duesenberry demonstration effect 60
Durbin–Watson statistic 61
Durbin–Wu–Hausman test 62
Edgeworth box 63
Edgeworth expansion 65
Edgeworth oligopoly model 66
Edgeworth taxation paradox 67
Ellsberg paradox 68
Engel aggregation condition 68
Engel curve 69
Engel’s law 71
Contents vii
Engle–Granger method 72
Euclidean spaces 72
Euler’s theorem and equations 73
Farrell’s technical efficiency measurement 75
Faustmann–Ohlin theorem 75
Fisher effect 76
Fisher–Shiller expectations hypothesis 77
Fourier transform 77
Friedman’s rule for monetary policy 79
Friedman–Savage hypothesis 80
Fullarton’s principle 81
Fullerton–King’s effective marginal tax rate 82
Gale–Nikaido theorem 83
Gaussian distribution 84
Gauss–Markov theorem 86
Genberg–Zecher criterion 87
Gerschenkron’s growth hypothesis 87
Gibbard–Satterthwaite theorem 88
Gibbs sampling 89
Gibrat’s law 90
Gibson’s paradox 90
Giffen goods 91
Gini’s coefficient 91
Goodhart’s law 92
Gorman’s polar form 92
Gossen’s laws 93
Graham’s demand 94
Graham’s paradox 95
Granger’s causality test 96
Gresham’s law 97
Gresham’s law in politics 98
Haavelmo balanced budget theorem 99
Hamiltonian function and Hamilton–Jacobi equations 100
Hansen–Perlof effect 101
Harberger’s triangle 101
Harris–Todaro model 102
Harrod’s technical progress 103
Harrod–Domar model 104
Harsanyi’s equiprobability model 105
Hausman’s test 105
Hawkins–Simon theorem 106
Hayekian triangle 107
Heckman’s two-step method 108
viii Contents
Heckscher–Ohlin theorem 109
Herfindahl–Hirschman index 111
Hermann–Schmoller definition 111
Hessian matrix and determinant 112
Hicks compensation criterion 113
Hicks composite commodities 113
Hicks’s technical progress 113
Hicksian demand 114
Hicksian perfect stability 115
Hicks–Hansen model 116
Hodrick–Prescott decomposition 118
Hotelling’s model of spatial competition 118
Hotelling’s T2statistic 119
Hotelling’s theorem 120
Hume’s fork 121
Hume’s law 121
Itô’s lemma 123
Jarque–Bera test 125
Johansen’s procedure 125
Jones’s magnification effect 126
Juglar cycle 126
Kakutani’s fixed point theorem 128
Kakwani index 128
Kalai–Smorodinsky bargaining solution 129
Kaldor compensation criterion 129
Kaldor paradox 130
Kaldor’s growth laws 131
Kaldor–Meade expenditure tax 131
Kalman filter 132
Kelvin’s dictum 133
Keynes effect 134
Keynes’s demand for money 134
Keynes’s plan 136
Kitchin cycle 137
Kolmogorov’s large numbers law 137
Kolmogorov–Smirnov test 138
Kondratieff long waves 139
Koopman’s efficiency criterion 140
Kuhn–Tucker theorem 140
Kuznets’s curve 141
Kuznets’s swings 142
Laffer’s curve 143
Lagrange multipliers 143
Contents ix
Lagrange multiplier test 144
Lancaster’s characteristics 146
Lancaster–Lipsey’s second best 146
Lange–Lerner mechanism 147
Laspeyres index 148
Lauderdale’s paradox 148
Learned Hand formula 149
Lebesgue’s measure and integral 149
LeChatelier principle 150
Ledyard–Clark–Groves mechanism 151
Leontief model 152
Leontief paradox 153
Lerner index 154
Lindahl–Samuelson public goods 155
Ljung–Box statistics 156
Longfield paradox 157
Lorenz’s curve 158
Lucas critique 158
Lyapunov’s central limit theorem 159
Lyapunov stability 159
Mann–Wald’s theorem 161
Markov chain model 161
Markov switching autoregressive model 162
Markowitz portfolio selection model 163
Marshall’s external economies 164
Marshall’s stability 165
Marshall’s symmetallism 166
Marshallian demand 166
Marshall–Lerner condition 167
Maskin mechanism 168
Minkowski’s theorem 169
Modigliani–Miller theorem 170
Montaigne dogma 171
Moore’s law 172
Mundell–Fleming model 172
Musgrave’s three branches of the budget 173
Muth’s rational expectations 175
Myerson revelation principle 176
Nash bargaining solution 178
Nash equilibrium 179
Negishi’s stability without recontracting 181
von Neumann’s growth model 182
von Neumann–Morgenstern expected utility theorem 183
von Neumann–Morgenstern stable set 185