bad state of affairs, e.g. incompetence, deceit and fraud. white-collar worker (J2) A non-manual worker employed in an office, laboratory or shop; a manager, professional worker, clerk, technician or sales assistant. There have been proportio- nately more of these workers in the labour force because of technological change, the growth of the public sector and the in- creasing bureaucratization of firms in oli- gopolistic industries. It was feared in the 1950s that this shift in the occupational structure would lead to the demise of TRADE UNIONS but instead new trade unions specializing in the organization of white- collar workers have emerged, especially in the public sector. This upgrading of the labour force has contributed to rising labour costs. white good (D0, L6) 1 A consumer durable, such as a washing machine, cooker or refrigerator, which is usually painted white. 2 Household linen (the original meaning of the term). Seealso:browngood;consumerdurable white knight (G3) A friendly bidder for a company already facing a hostile takeover bid. white market (D4) A legal market not in contravention of any governmental regulation; the opposite of a BLACK MARKET. white noise (C1) A completely random time series, all lagged correlations being zero; its spec- trum density is constant. white revolution (Q1) An agricultural revolution, particularly promoted in India, which encouraged the growth of herds of dairy cattle. white squire (G3) A company or several companies acting jointly in support of a WHITE KNIGHT in the fight against a predatory company partici- pating in a TAKEOVER battle. whole life insurance (G2) Insurance which both promises to pay a stated amount on the death of the insured and has an accumulated cash value avail- able as collateral for a loan. wholesale bank (G2) A bank acquiring its deposits from cor- porations and the interbank market. Seealso:retailbank wholesale money market (G1) An interbank market in which banks offer or obtain large deposits from each other. This is an important way for MERCHANT, INVESTMENT and other SECONDARY BANKS to obtain deposits as they do not receive deposits directly from the public. wholesale price index (E3) UK index of the group of commodities bought and sold by wholesalers. Changes in this index precede and indicate likely changes in the RETAIL PRICE INDEX. Seealso:coincidentindicators Wicksell, Knut, 1861–1926 (B3) Leading Swedish economist whose ideas were to inspire the STOCKHOLM SCHOOL and form a basis for a macroeconomic theory alternative to KEYNESIANISM. Educated at Uppsala University in mathematics, Wick- sell soon showed himself to be a coura- geous liberal, especially in propagating NEO-MALTHUSIAN views – like John Stuart MILL he was arrested for doing so. Income from journalism and various grants en- abled him to undertake independent study in 1885–1900; he came under the influence of Bo ¨ HM-BAWERK and acquired a great ad- miration for his theory of capital. This influence was clear in his celebrated Value, Capital and Rent (1893, original German edition) and Interest and Prices (1898, original German edition). A major theme of his work was the relationship between NATURAL RATES and MARKET RATES OF INTER- EST which, he believed, are at the heart of © 2002 Donald Rutherford cumulative processes of expansion and contraction in the economy. His work, as indicated by his lectures at Lund Univer- sity (where he was a professor from 1901), shows that he was eager to synthesize the capital theory of the AUSTRIAN SCHOOL with Walrasian GENERAL EQUILIBRIUM notions and other NEOCLASSICAL insights. Seealso:purecrediteconomy References Gardlund, T. (1958) The Life of Knut Wicksell,Stockholm: Almqvist & Wiksell. Uhr, G.C. (1960) The Economic Doctrines of Knut Wicksell, Berkeley, CA: Califor- nia University Press. wide monetary base (E4) Notes and coins in circulation with the public plus banks’ till money plus bankers’ balances with the Bank of England (UK). wider share ownership (G0) Widespread ownership of the shares of public companies throughout the popula- tion. It is argued that encouragement of this, as in the UK, makes private capitalism more acceptable throughout the country and that companies are less vulnerable to TAKEOVER as private shareholders retain their shares longer than INSTITUTIONAL INVESTORS do. In the UK, PRIVATIZATION has increased the number of persons holding shares. widget (D0) A convenient term for a non-specified product or service used in discussions of the principles of costing or industrial processes. widow’s cruse (E0) 1 The Cambridge expression, used by KAHN and Joan ROBINSON, to refer to an economy which continues at the same level of output, neither expanding nor contracting as any spending of entre- preneurs’ profits leads to an equal creation of other profits elsewhere in the economy. 2 The money-creating process of continu- ally increasing money through bank lending. Williamson, Oliver Eaton, 1932– (B3) Educated at MIT, Stanford and Carnegie Mellon Universities. Apart from a time as assistant professor at Berkeley, University of California, in 1963–5, he has been a professor at the University of Pennsylva- nia from 1965. His work on TRANSACTION COSTS , organizational hierarchies and ANTI- TRUST policy have made him a leader of the revived school of INSTITUTIONAL ECONOMICS. References Williamson, O.E. (1970) Corporate Control and Business Behavior, Englewood Cliffs, NJ: Prentice Hall. —— (1975) Markets and Hierarchies,New York: Free Press. —— (1986) Economic Organization: Firms, Markets and Policy Control, Brighton: Harvester Wheatsheaf. windfall gain or loss (E0) An unexpected increase or decrease in ex post income; if it had been expected, it would have been included in ex ante income. These windfalls are part of TRAN- SITORY INCOME but not of PERMANENT IN- COME . windfall profit (D0, E0) An unexpected PROFIT arising from a cir- cumstance not controlled by a firm or an individual. These profits constitute TRANSI- TORY INCOME and can give rise to unusual consumer behaviour. window dressing (G2) Interbank borrowing to improve the ap- pearance of a bank’s balance sheet. This was abandoned by UK CLEARING BANKS in 1946 but is still practised in some banking systems, e.g. in France. winner’s curse (C7) Paying more for an item than its value. This is measured by the difference between a winner’s bid and the next lower bid in a single unit auction. withdrawal (E0) Not spending income on domestically produced goods and services but using it to buy imports, pay taxes or make savings © 2002 Donald Rutherford with the consequence that the value of the MULTIPLIER is reduced. The CIRCULAR FLOW OF INCOME distinguishes withdrawals from INJECTIONS. Also known as a leakage. withholding tax (H2) A tax on earnings, interest or dividend payments deducted at source. This tax is designed to simplify the collection of tax and to ensure that tax is not evaded. By taxing dividends due for repatriation, it is hoped that foreign-owned companies will be encouraged to invest in the country where their subsidiaries are located. womeneconomists(B3)seefemale economists Wootton, Barbara, 1897–1988 (B3) Economist and social scientist noted for her works on INCOMES POLICY, PLANNING and criminology. She was educated at Girton College, Cambridge, where she originally read classics before a reading of MAR- SHALL ’s Principles of Economics caused her to specialize in economics. Although being awarded first-class honours with distinc- tion, university regulations prevented her, as a woman, from taking her degree. Soon she was made a fellow of Girton and Director of Studies in Economics. In 1922, she became a research officer of the Trades Union Congress. From 1926 to 1928 she was Principal of Morley College for Working Men and Women, then Di- rector of Studies for Tutorial Classes in the University of London (1928–45), Professor of Social Studies (1945–52) and at the end of her career a Nuffield research fellow. Her achievements were recognized by the award of many honorary degrees, a life peerage and being made a Companion of Honour. Throughout her works there is a practical utilitarian concern to relate pro- blems to reality. Her attack on Lionel ROBBINS’s definition of economics in her Lament for Economics and her approach to planning and wage policy all indicated her desire to influence policy-makers by using an empirical approach. Much of her knowledge of economy and society came from membership of many committees and commissions on leading public issues covering topics ranging from criminal statistics, hallucinogens and broadcasting to taxation, shop hours and the Civil Service. She married John Wesley Wootton when she was 20; he was killed five weeks later in the First World War. She was married a second time in 1934 to a student, George Wright. References Bean, P. and Whynes, D. (eds) (1986) Barbara Wootton. Social Science and Public Policy. Essays in her Honour, London and New York: Tavistock. Wootton, B. (1934) Plan or No Plan, London: Gollancz. —— (1938) Lament for Economics, Lon- don: Allen & Unwin. —— (1945) Freedom under Planning, Lon- don: Allen & Unwin. —— (1959) Social Science and Social Pathology, London: Allen & Unwin. —— (1964) The Social Foundations of Wage Policy: A Study of Contemporary British Wage and Salary Structure, 2nd edn, London: Allen & Unwin. —— (1967) In a World I Never Made: Autobiographical Reflections, London: Allen & Unwin. workable competition (D4, L1) Competition meeting only some of the conditions for PERFECT COMPETITION;an absence of ANTI-COMPETITIVE PRACTICES.Itis a SECOND-BEST situation. The criteria for an industry being in a state of workable competition are its level of profits relative to normal profits, its costs relative to those of the most efficient scale, the extent of its product variation and selling costs and its rate of technical progress relative to what is considered satisfactory. These condi- tions indicate how NORMATIVE the concept is. The notion is central to the implemen- tation of US ANTITRUST policy and increas- ingly used in UK COMPETITION POLICY. References Clark, J.M. (1961) Competition as a Dy- namic Process, Washington, DC: Brook- ings Institution. © 2002 Donald Rutherford Sosnick, S.H. (1958) ‘A critique of con- cepts of workable competition’, Quar- terly Journal of Economics 72: 380–423. Utton, M.A. (1986) The Economics of Regulating Industry, Oxford: Basil Blackwell. work classification (J2) A method of classifying work require- ments which is an alternative to job description. The elements in the classifica- tion are the work range, the work struc- ture (how changeable work goals are), work control (how much discretion is involved) and the cognitive effort required. This classification has been applied to knowledge-intensive WHITE-COLLAR work. worker compensation insurance (I3) Sickness and accident benefits financed by employers’ premiums. In the USA the amount of such insurance varies from state to state and according to the accident record of the firm. workers’ participation (L2) The participation of employees in the management of their firms. In Europe, a major example since 1950 has been Ger- many. There, two basic laws govern such schemes: the works constitution law ( Be- triebsverfassungsgesetz) and co-determina- tion law (Mitbestimmungsgesetz). Under the former, works councils, which can determine several matters including work- ing hours and vacations, can be formed if more than five workers are regularly em- ployed. Co-determination law deals with the structure of the supervisory board that exists in addition to an executive board and has worker representatives. The law, originally applied only to the iron, steel and coal industries, stipulated an equal number of employee and shareholder re- presentatives on supervisory boards. Gra- dually, this type of workers’ participation has spread to private sector firms. In 1976, the law was extended to all companies with over 2,000 employees, an extension to smaller companies being strongly resisted by employers. The chairman, a share- holders’ representative, has a second (cast- ing) vote and the representation of senior staff on the supervisory board has, it is argued, weighted the composition in fa- vour of the management. Seealso:industrialdemocracy workfare (J2, J6) US schemes of community work qualify- ing the unemployed for social security benefits. The idea was first used by the Roosevelt Administration in the 1930s. The US Federal Act of 1981, the Omnibus Budget Reconciliation Act, forced all re- cipients of federal or state aid to register for work or job training and gave the states the powers to require such persons to participate in work incentive, job search or work experience programmes. These schemes have been criticized for creating slave labour, for displacing existing work- ers, for adding to administrative costs and for reducing the chance of the unemployed seeking good jobs. The most enthusiastic implementation of the scheme has been in West Virginia. Other countries, e.g. Swe- den, have versions of such schemes to keep down the level of unemployment. References Ravallion, M. (1999) ‘Appraising Work- fare’, World Bank Research Observer 14: 31–48. working capital (M2) Current assets minus current liabilities; capital available to provide short-term financing for a firm. CLASSICAL ECONOMISTS regarded this as mainly the raw materials and the WAGES FUND. Today it is often regarded as a measure of the LIQUIDITY of a firm. workingcapitalratio(M4)seecurrent ratio working hours (J2) The total number of hours a person works per day or per week. The view that reduced hours increases workers’ welfare and chances of employment is based on too simplistic an analysis: a reduction in hours often raises unit labour costs which, © 2002 Donald Rutherford in turn, reduces international competitive- ness and profit margins on traded goods leading to lower economic growth and employment. If reduced working hours raise PRODUCTIVITY, no extra demand for labour results. In France, working hours were reduced from forty to thirty-nine per week, with full compensation, in January 1982; in West Germany, the Metalworkers Union demanded in 1984 a reduction from forty to thirty-five hours with partial compensation. MARX made the length of the working day a key issue: he argued that working hours longer than those spent in produ- cing subsistence for workers created SUR- PLUS VALUE . Paradoxically, working hours have been longer in socialist countries, being forty-two to forty-five hours per week. But in the developing countries of Africa and Asia weekly working hours are often as much as fifty or fifty-five. Japan, which has industrialized only recently, still has long average working hours, about forty-eight per week (three-quarters of the labour force works a six-day week). workingpopulation(J2)seelabourforce working-time regime (J2) The rules set down in the EUROPEAN SOCIAL CHAPTER stating the maximum length of the working week and working day and the dispersion of hours. Full-time and part- time work are both covered. Seealso:annualized-hourssystem;flex- ibleworking-timeschemes work sharing (J6) A method of reducing unemployment by splitting a full-time job into two part-time jobs. Parents sometimes do this in order to share in domestic duties and child rearing. Occupations introducing this form of shar- ing include school teaching and social work. Seealso:jobsharing World Bank (F3, G2) Popular name for the International Bank for Reconstruction and Development which was conceived at BRETTON WOODS in 1944 and started business in 1947; it was intended that it should be linked to the INTERNATIONAL MONETARY FUND by member countries belonging to both. It aims to encourage the provision of private, rather than public, investment. Of its initial authorized capital of $10 million, one- tenth was paid in dollars and gold. Fed- eral and state bonds of the bank issued in the USA raised a substantial amount of the original capital. At different phases of its life, it has been a bank of reconstruc- tion, a development bank and a policy reformer. Current aims suggested for the bank include the major provision of funds and technical advice to Third World borrowers, the co-ordination of aid to less developed countries and theoretical leadership in de- velopment policy. Some people in the USA regard the World Bank as a means of spreading US political philosophy and monetarism, but the financial rise of Japan as the world’s major lender increasingly diminished US influence. In recent years, the bank has lent about 90 per cent of its advances for infrastructure projects, e.g. education, health, irrigation and telecom- munications. Currently, recipient countries are being asked to adopt price reforms and market-related trading reforms. world debt problem (F3) The consequences of the large debts of less developed countries accumulated since 1970. The magnitude of this indebtedness has given rise to problems of debt servi- cing and the stability of the banking system. The significance of the debts has often been measured by the ratios of debt to gross national product or of debt to service, but it has been asserted that a better measure is the comparison of the rate of growth of export earnings with the rate of interest. Several approaches have been suggested to reduce this indebted- ness, e.g. in 1986 the World Bank sug- gested SECTOR ADJUSTMENT LENDING as a means of reducing the indebtedness of © 2002 Donald Rutherford certain THIRD WORLD countries. Some coun- tries have reduced their indebtedness by a policy of exchanging debt for equity but there are limits to such conversions as many national governments are alarmed to see more foreign ownership of domestic companies. Major Western banks have gradually written off these loans as bad debts. Seealso:debtserviceindicators;Jubilee 2000 References Griffith-Jones, S. (ed.) (1988) Managing World Debt, Brighton: Harvester Wheatsheaf. Holley, H.A. (1987) Developing Country Debt: The Role of the Commercial Banks, London: Routledge. World Economic Forum (F0) An annual meeting of leading politicians and bankers at Davos, Switzerland, to discuss strategies to keep the world econ- omy on an even course. In 1970 Professor Klaus Schwab convened an informal gath- ering of Europe’s chief executives at Davos under the patronage of the Commission of European Communities and the following year created a non-profit-making founda- tion, the European Management Forum, subsequently renamed the World Eco- nomic Forum in 1987. It has expanded its activities to organize meetings for all major world regions and brought together heads of states and governments too. Increasingly it has been lobbied at its meetings by protestors against global ca- pitalism. world inflation (E3) The rates of inflation country by country around the world, measured by annual rates of increase of consumer or producer prices. Countries with high post-war infla- tion records include Argentina, Brazil, Israel, Mexico and Yugoslavia; countries with low post-war inflation records in- clude Japan, Switzerland, the USA, and West Germany before reunification. References Brown, A.L. (1985) World Inflation since 1950, Cambridge: Cambridge University Press. Horsman, G. (1988) Inflation in the Twen- tieth Century, Brighton: Harvester Wheatsheaf. World Intellectual Property Organiza- tion (O3) A Geneva-based body concerned with upholding international conventions on protected ideas and with harmonizing na- tional laws concerning such property. Seealso:intellectualproperty world monetary reserve assets (F3) The total of the assets of all the countries of the world, in the form of special drawing rights, gold and reserve curren- cies. Seealso:reserveassets world monetary system (F3) The institutional mechanism for settling intercountry indebtedness and for provid- ing loans to increase the liquidity of countries in need. After the GOLD STAN- DARD , there was a world institutional gap until the BRETTON WOODS system was de- vised. Although the arrangements for peg- ging exchange rates ended in 1971, the INTERNATIONAL MONETARY FUND and the WORLD BANK remain as pillars of a world system. Seealso:EuropeanMonetarySystem world stock market indices (G1) see AppendixB world systems perspective (O0) A method of analysing economic develop- ment which uses a structural approach to put FOREIGN AID in the context of being part of the world economy and measures that country’s relationship with the rest of the world economy. world trade (F1) The sum total volume of exports or imports of every national ECONOMY. The © 2002 Donald Rutherford growth of trading within MULTINATIONAL CORPORATIONS , much of it measured at ARTI- FICIAL TRANSFER PRICES , has made it more difficult to gain a precise idea of the value of exports of particular countries. The volume of world trade fluctuates accord- ing to the state of major economies, especially the USA, and grows at different rates within particular trading blocs and between them. World Trade Organization (F1) The successor to GATT inaugurated in 1995 and based in Geneva, Switzerland. It administers the global rules of trade of a multilateral trading system to facilitate and to encourage world trade. It has over 140 member countries and covers more than 90 per cent of world trade. Decisions on trade disputes are settled consensually. The WTO also administers trade agree- ments and reviews national trade policies. worst case consequence analysis (Q2) A form of risk management in which controlled experiments provide an aware- ness of the consequences of an extreme event. This is used as part of environmen- tal controls. writer (G1) A CALL seller in an option market who sells OPTIONS against shares he or she already owns in order to improve their perfor- mance. © 2002 Donald Rutherford X X-efficiency (D4) LEIBENSTEIN’s concept of efficiency that re- jects the technical efficiency notion of profit maximizing and cost minimizing. He argued that individual workers are free to choose their effort level and interpret their own jobs. The equilibrium position for a firm will be when every individual is in his or her ‘inert area’, an effort point which, if moved away from, would reduce utility. This level of ‘efficiency’ and associated cost is com- fortable for a firm’s individuals. Prices are fixed using conventional formulae. References Leibenstein, H. (1976) Beyond Economic Man: A New Foundation for Macroeco- nomics, Cambridge, MA: Harvard Uni- versity Press. —— (1978) General X-Efficiency Theory and Economic Development,NewYork and London: Oxford University Press. —— (1980) Inflation, Income Distribution and X-Efficiency Theory, London: Croom Helm; New York: Barnes & Noble. Xenophon, 430–354 BC (B3) A follower of Socrates before embarking on military campaigns, including the ex- pedition of Cyrus. The three works attrib- uted to him most relevant to economics are Ways and Means to Increase the Revenues of Athens, perhaps the first work on PUBLIC FINANCE in which he argued for state intervention to expand silver mining, Oeconomicus which included a discussion of the nature of wealth and income differentials and Cyropaedia which ex- plains that the DIVISION OF LABOUR is limited by the extent of the market. Seealso:AncientGreeks;Aristotle;Plato Xetra (G1) The electronic cash market trading system for securities of the Frankfurt exchange. Both auctions and continuous trading are used for dealing in over 5,000 equities and over 10,000 warrants. Safety mechanisms such as volatility interruptions are in force. The trading platform of the iX interna- tional exchanges. X-form (L2) A hybrid type of business enterprise that is a mixture of the H- and M-FORMS. Seealso:U-form References Williamson, O.E. (1986) Economic Organi- zation: Firms, Markets and Policy Control, ch. 4, Brighton: Harvester Wheatsheaf. © 2002 Donald Rutherford Y Yankeebid(D0)seesealedbidauction Yankee bond (G1) A bond issued in the US securities market by a non-US concern. yearling (G1) A UK local government stock maturing in a year. Seealso:governmentbond yellow dog contract (J5) An individual employment contract whereby a worker promises not to join a TRADE (LABOR) UNION. This standard practice of many US firms in the 1920s was used to impede the growth of union membership. It was outlawed by the NORRIS–LA GUARDIA ACT . yellow stripe price (G1) A stock market price shown on a screen of the STOCK EXCHANGE AUTOMATED QUOTATION SYSTEM which refers to large BARGAINS of a particular stock. yield (D2, G0) 1 Return to an investment measured by dividend or interest receivable divided by price of that security. 2 The annual produce from cultivating a piece of land. Seealso:redemptionyield yield curve (G0) The relationship between the percentage yield of a bond and the number of years to its maturity. An inverse yield curve is downward sloping, a positive yield curve upward sloping and a flat yield curve horizontal. In most cases the yield, deter- mined in a secondary market, is for a previously issued bond. The yield is also a guide to the pricing of new bond issues. The TERM STRUCTURE OF INTEREST RATES © 2002 Donald Rutherford determines the curve, e.g. if short-term rates are higher than long-term , there will be an inverse yield curve. Seealso:termstructureofinterestrates yield gap (G0) The YIELD on equities minus the yield on bonds. Inflation after 1959 depressed the capital values of bonds, raising their yields in both the UK and the USA: this created a reverse yield that has fluctuated between about 1 per cent and 9 per cent. Young, Allyn Abbott, 1876–1929 (B3) Educated at Hiram College, Ohio, and the University of Wisconsin. His many aca- demic appointments included professor- ships at Stanford and, from 1913, at Cornell. His wide-ranging articles included demography and many aspects of applied economics, public finance and antitrust policy. He will long be remembered for his immensely influential article on IN- CREASING RETURNS TO SCALE that both ad- vanced the theory of ECONOMIC GROWTH and challenged the Marshallian THEORY OF THE FIRM . Tragically, he died relatively young of influenza in London. References Young, A.A. (1928) ‘Increasing returns and economic progress’, Economic Jour- nal 38: 527–42. yuppie, yuppy (J1) A young urban professional. Most of these aggressive young graduates are em- ployed in financial centres such as New York and London. These health-con- scious workaholics firmly believe in free market economics. Their high salaries have made it possible for them to con- tribute to the GENTRIFICATION of inner city areas. © 2002 Donald Rutherford [...]... Economic Affairs institutional economics mono -economics normative economics organizational economics Panglossian economics political economy positive economics postmodern economics radical economics Royal Economic Society A2 Teaching of economics economics B Methodology and history of economic thought B0 General anarchism Islamic economics monetarism vulgar economists B1 History of economic thought to 1925... Economic Journal (the journal of The Royal Economic Society) and the Journal of Economic Literature A General economics and teaching A1 General economics A2 Teaching of economics B Methodology and history of economic thought B0 General B1 History of economic thought to 1925 B2 History of economic thought since 1925 B3 History of economic thought: individuals B4 Economic methodology C Mathematical and... sector are given freely to consumers, e.g most of the health care provided by the UK’s National Health Service Although goods can be free to a consumer, they are not costless because of the scarcity of factor inputs zero profit (D0) The absence of SUPERNORMAL PROFITS in the long run, under conditions of PERFECT COMPETITION, as firms earn only NORMAL PROFITS which are included in average costs zero-rated... French Circuit School Gandhian economics German Historical School instant monetarism libertarian economics neo-Keynesians neo-Marxists neo-mercantilism neo-Ricardian theory New Cambridge economics new classical economics new macroeconomics New Right post-Keynesians Reaganomics Regulation School Stockholm School supply-side economics theonomy transaction cost economics B3 History of economic thought: individuals... windfall profit zero priced zero profit zone of freedom D1 Household behaviour and family economics aggregate demand axioms of preference behavioural economics brand loyalty characteristics theory of consumer demand compensated demand curve consumer equilibrium consumerism consumer protection legislation consumer society consumer sovereignty consumer’s surplus cornucopia diminishing marginal rate of substitution... M2 M3 M3c M4 M5 market rate of interest © 2002 Donald Rutherford means of payment medium of account medium of exchange medium of redemption metallist minimum lending rate monetarism monetary veil money money at call money illusion money multiplier moneyness money supply monkey Mundell–Tobin effect natural rate of interest near money neutrality of money neutral real rate of interest non-interest-bearing... elasticity elasticity of a factor of production elasticity of demand elasticity of expectations elasticity of substitution elasticity of supply employment endogenous variable envelope curve equilibrium equilibrium price excess capacity excess demand excess supply exchange exclusion principle exit–voice expectations expected utility experience good explicit contract explicit cost external economy of scale externality... The aggregation of NODAL PRICES to produce the same prices over part of a system such as electricity transmission zone of freedom (D0, L9) A price range of the tariffs set by major airlines The ‘zone’ is the range below and above a single reference level within which an air tariff must be set zoning (Q3) A local government method of regulating land use By the prohibition of certain types of building in... commodity fetishism concrete labour constant capital constant elasticity of substitution production function diminishing returns law diseconomy of scale diversification division of labour division of thought domestic resource cost domestic system economic calculation economic methods economic planning economy of scale economy of scope economy of size Engel coefficient factor productivity ` filiere concept fragmentation... interest elasticity of savings internal rate of return investment investment fundamentals Katona effect lacking Lerner effect life-cycle hypothesis © 2002 Donald Rutherford Lundberg lag marginal efficiency of capital marginal efficiency of investment marginal propensity to consume marginal propensity to save monetary overhang net investment overaccumulation paradox of thrift permanent income hypothesis Pigou . Affairs institutional economics mono -economics normative economics organizational economics Panglossian economics political economy positive economics postmodern economics radical economics Royal Economic. General economics and teaching A1 General economics A2 Teaching of economics B Methodology and history of economic thought B0 General B1 History of economic thought to 1925 B2 History of economic. are its level of profits relative to normal profits, its costs relative to those of the most efficient scale, the extent of its product variation and selling costs and its rate of technical progress