Toward an Economic Theory of Leadership: Leading by Exampledoi:10.2139/ssrn.15570This paper explores leadership within organizations. Leadership is distinct from authority because following a leader is a voluntary rather than coerced activitSocial Science Electronic Publishing...
Economic equilibrium is the result of opposing economic variablesgravitatingtowards their natural state. In economics – which is the study of economies or the methods and organization of the production, distribution, and consumption of goods and services – the market-based economy is one in which ...
Hence, the observed capital structures of companies frequently deviate from the optimal capital structure that should be targeted, contrary to the theories taught in academia (i.e. mismatch between economic theory and reality). The theory also highlights the importance of historical profitability as on...
Financial Forecasting: Understanding Economic Indicators and How to Use Them When it comes to managing your finances, staying informed about the future of the economy is crucial. Economic forecasting provides insights into potential trends, allowing businesses and individuals to make informed decisions. ...
This part of your dissertation forms the basis for your analysis, aiding in interpreting results and making broader conclusions. The theoretical framework also makes the research more trustworthy. It shows that the study is built on a solid understanding of the theory and clear concepts. ...
Economic theory yields strong implications for the actual behavior of individuals. In the standard utility maximization model for instance, economic theory places strong restrictions on individual responses to changes in prices and wealth, the so-called integrability constraints. These restrictions are inher...
The branch of economic theory called welfare economics is an example of normative economics. The leading thinkers in this area early on were Abram Bergson and Nobel Prize-winning economist Kenneth Arrow. The Bottom Line Economics is considered an art and a science, because it combines the use of...
Rational choice theory is an economic theory that assumes rational behavior on the part of individuals. Rational behavior may not involve receiving the most monetary or material benefit, because the satisfaction received could be purely emotional or non-monetary. ...
Investors should also not overlook the subjective nature of economic forecasting. Predictions are heavily influenced by what type of economic theory the forecaster buys into. Projections can differ considerably between, for example, one economist who believesbusiness activityis determined by thesupply of ...
The cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demanded of one good when the price for another one changes. The cross elasticity of demand for substitute goods is always positive because the demand for one good increases when the price for ...