Economics
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Political science
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Theorem
Economics theorems
Fisher separation theorem
In economics, the Fisher separation theorem asserts that the primary objective of a corporation will be the maximization of its present value, regardless of the preferences of its shareholders. The th...
Stolper–Samuelson theorem
The Stolper–Samuelson theorem is a basic theorem in Heckscher–Ohlin trade theory. It describes the relationship between relative prices of output and relative factor rewards—specifically, real wages a...
Nakamura number
In cooperative game theory and social choice theory, the Nakamura number measures the degree of rationalityof preference aggregation rules (collective decision rules), such as voting rules.It is an in...
Topkis's theorem
In mathematical economics, Topkis's theorem is a result that is useful for establishing comparative statics. The theorem allows researchers to understand how the optimal value for a choice variable c...
Topkis's theorem - Wikipedia
Heckscher–Ohlin theorem
The Heckscher-Ohlin theorem was developed by Swedish economist Eli Heckscher and his student Bertil Ohlin. The model is stationed that after the second World War all countries have the exact same tech...
Edgeworth's limit theorem
Edgeworth's limit theorem is an economic theorem created by Francis Ysidro Edgeworth that examines a range of possible outcomes which may result from free market exchange or barter between groups of p...
Edgeworth's limit theorem - Wikipedia
Sonnenschein–Mantel–Debreu theorem
The Sonnenschein–Mantel–Debreu theorem (named after Gérard Debreu, Rolf Ricardo Mantel, and Hugo Freund Sonnenschein) is a result in general equilibrium economics. It states that the excess demand fun...
Modigliani–Miller theorem
The Modigliani–Miller theorem (of Franco Modigliani, Merton Miller) is a theorem on capital structure, arguably forming the basis for modern thinking on capital structure. The basic theorem states th...
Modigliani–Miller theorem - Wikipedia
Okishio's theorem
Okishio's theorem is a theorem formulated by Japanese economist Nobuo Okishio. It has had a major impact on debates about Marx's theory of value. Intuitively, it can be understood as saying that if on...
Moving equilibrium theorem
Consider a dynamical system(1)..........(2)..........with the state variables and . Assume that is fast and is slow. Assume that the system (1) gives, for any fixed , an asymptotically stable solut...
Envelope theorem
The Envelope Theorem is a result about the differentiability properties of the objective function of a parameterized optimization problem. As we change parameters of the objective, the Envelope Theore...
Rybczynski theorem
The Rybczynski theorem was developed in 1955 by the Polish-born English economist Tadeusz Rybczynski (1923–1998). It states that at constant relative goods prices, a rise in the endowment of one facto...
Bishop–Cannings theorem
Lerner symmetry theorem
The Lerner symmetry theorem is a result used in international trade theory, which states that, based on an assumption of a zero balance of trade (that is, the value of exported goods equals the value ...
Duggan–Schwartz theorem
The Duggan–Schwartz theorem (named after John Duggan and Thomas Schwartz) is a result about voting systems designed to choose a nonempty set of winners from the preferences of certain individuals, whe...
Factor price equalization
Factor price equalization is an economic theory, by Paul A. Samuelson (1948), which states that the prices of identical factors of production, such as the wage rate, or the return to capital, will be ...
Faustmann's formula
Faustmann's formula, or the Faustmann Model, gives the present value of the income stream for forest rotation. It was derived by the German forester Martin Faustmann in 1849.The rotation problem, deci...
Fundamental theorems of welfare economics
There are two fundamental theorems of welfare economics. The first states that any competitive equilibrium or Walrasian equilibrium leads to a Pareto efficient allocation of resources. The second sta...
Frisch–Waugh–Lovell theorem
In econometrics, the Frisch–Waugh–Lovell (FWL) theorem is named after the econometricians Ragnar Frisch, Frederick V. Waugh, and Michael C. Lovell.The Frisch–Waugh–Lovell theorem states that if the re...
Henry George Theorem
The Henry George Theorem, named for 19th century U.S. political economist and activist Henry George, states that under certain ideal conditions, aggregate spending by government on public goods, will ...
Capital market imperfections
Arrow's impossibility theorem
In social choice theory, Arrow’s impossibility theorem, the General Possibility Theorem, or Arrow’s paradox, states that, when voters have three or more distinct alternatives (options), no rank order...
Bondareva–Shapley theorem
The Bondareva–Shapley theorem, in game theory, describes a necessary and sufficient condition for the non-emptiness of the core of a cooperative game. Specifically, the game's core is non-empty if and...
Intensity of preference
Intensity of preference, also known as intensity preference, is a term popularized by the work of the economist Kenneth Arrow, who was a co-recipient of the 1972 Nobel Memorial Prize in Economics. ...
Gibbard–Satterthwaite theorem
The Gibbard–Satterthwaite theorem, named after Allan Gibbard and Mark Satterthwaite, is a result about the deterministic voting systems that choose a single winner using only the preferences of the v...
Holmström's theorem
In economics, Holmström's theorem is an impossibility theorem attributed to Bengt R. Holmström proving that no incentive system for a team of agents can make all of the following true:Thus a Pareto-ef...
Holmström's theorem - Wikipedia
No-trade theorem
In financial economics, the no-trade theorem states that (1) if markets are in a state of efficient equilibrium, (2) if there are no noise traders or other non-rational interferences with prices, and ...
Coase theorem
In law and economics, the Coase theorem (pronounced /ˈkoʊs/) describes the economic efficiency of an economic allocation or outcome in the presence of externalities. The theorem states that if trade i...
Coase theorem - Wikipedia
Liberal paradox
The liberal paradox, also Sen paradox or Sen's paradox, is a logical paradox discovered by Amartya Sen which purports to show that no social system can simultaneouslyThis paradox is contentious becaus...