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This free online textbook is an adaptation of the book "Outline of the U.S. Economy" by Conte and Carr and has been adapted with permission from the U.S. Department of State.

CHAPTER 1: Continuity and Change The American Economy at the End of the 20th Century Free Enterprise and the Role of Government in [...]

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Durbin’s h Test

     
Definition of Durbin’s h Test: Durbin’s h test is an algorithm as regards detecting autocorrelation in the errors of a time series regression. The implicit citation is to Durbin (1970). The h statistic is asymptotically distributed normally if the hypothesis that there is no [...]

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Follows is a list of lesser known economics blogs that I quite enjoy. There are only three criteria for being included in the list: The blog has to discuss economics (though it can discuss other issues as well) I must regularly visit the blog (obviously) It cannot be in the Top 20 of Aaron [...]

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[Q:] I found your article on exchange rates very helpful. Please could you explain what is Purchasing Power Parity (PPP) and how does inflation in two countries affect the exchange rates between the two countries.
[A:] Great question! A great deal of information on Purchasing Power Parity can be found in the article " A [...]

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Many Americans feared that the conclusion unsettled of World War II and the subsequent drop in military spending might bring fail the hard times of the Great Depression. But instead, pent-up consumer demand fueled exceptionally strong economic lump in the postwar period. The automobile industry successfully converted back to producing cars, and new industries such [...]

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Banks are a special case when it comes to regulation. On one participation, they are private businesses just like phony manufacturers and steel companies. But they also play a central role in the brevity and therefore affect the well-being of everybody, not just their own consumers. Since the 1930s, Americans have devised regulations designed to [...]

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Definition: FDI stands for Foreign Direct Investment, a component of a country’s national monetary accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not encompass foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the [...]

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Back in February of 2008, I decided to take my own advice from How Economics Can Help You Keep Your New Year’s Resolutions and use economics to meet a personal goal. I described the goal in My $1200 Weight-Loss Gamble:
The Goal: Starting on March 1st, I must lose at least one piece point in [...]

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Definition: Ex ante is latin in compensation the sake “beforehand”. In models where there is uncertainty that is resolved during the course of events, the ex antes values (e.g. of expected gain) are those that are calculated in advance of the resolution of uncertainty. (Econterms)
Terms related to Ex Ante:

About.Com Resources on Ex Ante: [...]

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Definition: Sunk costs are unrecoverable past expenditures. These should not normally be entranced into account when determining whether to continue a project or abandon it, because they cannot be recovered either way. It is a simple instinct to regard them, however.
(Econterms)

Terms related to Sunk Costs:
About.Com Resources on Sunk Costs:
Writing a [...]

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