Lexicon Flashcards
- understand and apply these terms within academic writing and analysis
Difference in differences (DID) definition
An econometric technique which tries to mimic a treatment and control study
Difference in differences - uses?
Looking at policy changes after implementation.
Endogenous - HEHPA definition
Variables in a model that are changed or determined by other variables in the model
Exogenous - HEHPA definition
Variable outside the model and not predicted by variables in the model
Herfindahl–Hirschman Index (HHI)
A measure of the size of firms in relation to the industry they are in and is an indicator of the amount of competition among them.
Within HHI, what do 0 and 1 represent?
0 is a huge number of firms and 1 is a monopoly.
Define ‘Austerity’
Harsher economic policies implemented to reduce the government budget deficit (reduce their debt)
Define ‘Capital’ and ‘Capital Saturation’
Capital = Cash or liquid assets being held/obtained for expenditures
Capital saturation = A lack of sufficient investment capital, leading to stagnation in growth/ operations
Define ‘In real terms’
The change in a financial number after correcting for inflation
Define ‘Inflation’
The rate at which prices increase over time
Define ‘Expenditure’
Spending
