Tag: concept
Efficient Market Hypothesis
DefinitionThe efficient-market hypothesis is a theory in financial economics that states that asset prices fully reflect all available information. A direct implication is that...
X-Efficiency
What is 'X-Efficiency' X-efficiency is the degree of efficiency maintained by individuals and firms under conditions of imperfect competition. According to the...
Radner Equilibrium
What is 'Radner Equilibrium' A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then even...
Macaulay Duration
What is The 'Macaulay Duration' The Macaulay duration is the weighted average term to maturity of the cash flows from a bond....
Creative Destruction In Economics
Creative destruction, sometimes called Schumpeter's gale, is an idea people studying economics theory say may lead to innovation in the business cycle. Karl Marx...
Taguchi Method Of Quality Control
What is the 'Taguchi Method Of Quality Control' The Taguchi method of quality control is an approach to engineering that emphasizes the...
Zero-Based Budgeting (ZBB)
What is 'Zero-Based Budgeting - ZBB' Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for...
What is the Pareto Principle?
Definition
The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes. Management consultant Joseph M. Juran...