Economics

Economics

basics of economics

Contributors in Economics

Economics

When two businesses join together, either by merging or by one company taking over the other. There are three sorts of mergers between firms: horizontal integration, in which two similar firms tie ...

Menu costs

Economy; Economics

How much it costs to change prices. Just as a restaurant has to print a new menu when it changes the price of its food, so many other firms face a substantial outlay each time they cut or raise what ...

Mean reversion

Economy; Economics

The tendency for subsequent observations of a random variable to be closer to its mean than the current observation. For example, if the current number is 7, the average is 5, and there is mean ...

Leveraged buy-out (LBO)

Economy; Economics

Buying a company using borrowed money to pay most of the purchase price. The debt is secured against the assets of the company being acquired. The interest will be paid out of the company's future ...

Lender of last resort

Economy; Economics

One of the main functions of a central bank. When financially troubled banks need cash and nobody else will lend to them, a central bank may do so, perhaps with strings attached, or even by taking ...

Leading indicators

Economy; Economics

Economic crystal balls. Also known as cyclical ¬indicators, these are groups of statistics that point to the future direction of the economy and the business cycle. Certain economic variables, fairly ...

Law and economics

Economy; Economics

Laws can be an important source of economic efficiency – or inefficiency. Early economists such as Adam Smith often wrote about the economic impact of legal matters. But economics subsequently ...