Economics is a social science concerned chiefly with description and analysis of the production and consumption of goods and services according to the Merriam-Webster Dictionary. Economics focuses on the behaviour and interactions of economic agents and how economies work, consistent with this focus, textbooks often distinguish between microeconomics and macroeconomics. Microeconomics examines the behaviour of elements in the economy, including individual agents and markets, their interactions. Individual agents may include, for example, firms, macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, economic growth, and the public policies that address these issues. Economic analysis can be applied throughout society, as in business, health care, Economic analyses may be applied to such diverse subjects as crime, the family, politics, social institutions, war and the environment. At the turn of the 21st century, the domain of economics in the social sciences has been described as economic imperialism.
The ultimate goal of economics is to improve the conditions of people in their everyday life. There are a variety of definitions of economics. Some of the differences may reflect evolving views of the subject or different views among economists, to supply the state or commonwealth with a revenue for the publick services. Say, distinguishing the subject from its uses, defines it as the science of production, distribution. On the satirical side, Thomas Carlyle coined the dismal science as an epithet for classical economics, in this context and it enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. He affirmed that previous economists have usually centred their studies on the analysis of wealth, how wealth is created and consumed, but he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it, generates both cost and benefits, resources are used to attain the goal.
If the war is not winnable or if the costs outweigh the benefits. Some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets, there are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. The same source reviews a range of included in principles of economics textbooks. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which the author believes economics is evolving, microeconomics examines how entities, forming a market structure, interact within a market to create a market system
The Netherlands, informally known as Holland is the main constituent country of the Kingdom of the Netherlands. It is a densely populated country located in Western Europe with three territories in the Caribbean. The European part of the Netherlands borders Germany to the east, Belgium to the south, and the North Sea to the northwest, sharing borders with Belgium, the United Kingdom. The three largest cities in the Netherlands are Amsterdam and The Hague, Amsterdam is the countrys capital, while The Hague holds the Dutch seat of parliament and government. The port of Rotterdam is the worlds largest port outside East-Asia, the name Holland is used informally to refer to the whole of the country of the Netherlands. Netherlands literally means lower countries, influenced by its low land and flat geography, most of the areas below sea level are artificial. Since the late 16th century, large areas have been reclaimed from the sea and lakes, with a population density of 412 people per km2 –507 if water is excluded – the Netherlands is classified as a very densely populated country.
Only Bangladesh, South Korea, and Taiwan have both a population and higher population density. Nevertheless, the Netherlands is the worlds second-largest exporter of food and agricultural products and this is partly due to the fertility of the soil and the mild climate. In 2001, it became the worlds first country to legalise same-sex marriage, the Netherlands is a founding member of the EU, Eurozone, G-10, NATO, OECD and WTO, as well as being a part of the Schengen Area and the trilateral Benelux Union. The first four are situated in The Hague, as is the EUs criminal intelligence agency Europol and this has led to the city being dubbed the worlds legal capital. The country ranks second highest in the worlds 2016 Press Freedom Index, the Netherlands has a market-based mixed economy, ranking 17th of 177 countries according to the Index of Economic Freedom. It had the thirteenth-highest per capita income in the world in 2013 according to the International Monetary Fund, in 2013, the United Nations World Happiness Report ranked the Netherlands as the seventh-happiest country in the world, reflecting its high quality of life.
The Netherlands ranks joint second highest in the Inequality-adjusted Human Development Index, the region called Low Countries and the country of the Netherlands have the same toponymy. Place names with Neder, Nieder and Nedre and Bas or Inferior are in use in all over Europe. They are sometimes used in a relation to a higher ground that consecutively is indicated as Upper, Oben. In the case of the Low Countries / the Netherlands the geographical location of the region has been more or less downstream. The geographical location of the region, changed over time tremendously
Transport economics is a branch of economics founded in 1959 by American economist John R. Meyer that deals with the allocation of resources within the transport sector. It has strong links to civil engineering, transport economics differs from some other branches of economics in that the assumption of a spaceless, instantaneous economy does not hold. People and goods flow over networks at certain speeds, advance ticket purchase is often induced by lower fares. The networks themselves may or may not be competitive, a single trip may require the bundling of services provided by several firms and modes. In transport, demand can be measured in number of journeys made or in distance traveled across all journeys. Supply is considered to be a measure of capacity, the price of the good is measured using the generalised cost of travel, which includes both money and time expenditure. The effect of increases in supply are of particular interest in transport economics, in addition to providing benefits to their users, transport networks impose both positive and negative externalities on non-users.
The consideration of these externalities - particularly the negative ones - is a part of transport economics, positive externalities of transport networks may include the ability to provide emergency services, increases in land value, and agglomeration benefits. Negative externalities are wide-ranging and may include air pollution, noise pollution, light pollution, safety hazards, community severance. Congestion is considered a negative externality by economists, an externality occurs when a transaction causes costs or benefits to third party, although not necessarily, from the use of a public good. For example, manufacturing or transportation cause air pollution imposing costs on others when making use of public air, traffic congestion is a negative externality caused by various factors. Within the transport economics community, congestion pricing is considered to be a mechanism to deal with this problem by allocating scarce roadway capacity to users. Capacity expansion is a mechanism to deal with traffic congestion.
William Vickrey, winner of the 1996 Nobel Prize for his work on hazard, is considered one of the fathers of congestion pricing. There is the excess in demand compared to supply. This is because at times there is a large demand for trains. However, space on the platforms and on the trains is limited, as a result, there are crowds of people outside the train doors and in the train station corridors. This increases delays for commuters, which can cause a rise in stress or other problems
Leiden University, located in the city of Leiden, is the oldest university in the Netherlands. The university was founded in 1575 by William, Prince of Orange, the Dutch Royal Family and Leiden University still have a close relationship, Queens Juliana and Beatrix and King Willem-Alexander are all former students. Leiden University has seven faculties, over 50 departments and enjoys an international reputation. Shanghai Jiao Tong Universitys 2011 Academic Ranking of World Universities ranked Leiden University as the 29th best university worldwide, the Times Higher Education World University Rankings consistently rank Leiden University as the best university in Continental Europe for Arts and Humanities. During this time Leiden was home to figures as René Descartes, Christiaan Huygens, Hugo Grotius, Baruch Spinoza. The university is a member of the Coimbra Group, the Europaeum, Leiden University houses more than 40 national and international research institutes. In 1575, the emerging Dutch Republic did not have any universities in its northern heartland, the only other university in the Habsburg Netherlands was the University of Leuven in southern Leuven, firmly under Spanish control.
It is said the choice fell on Leiden as a reward for the defence of Leiden against Spanish attacks in the previous year. Ironically, the name of Philip II of Spain, Williams adversary, appears on the foundation certificate. Philip II replied by forbidding any subject to study in Leiden, renowned philosopher Baruch Spinoza was based close to Leiden during this period and interacted with numerous scholars at the university. At the end of the century, Leiden University again became one of Europes leading universities. At the world’s first university low-temperature laboratory, professor Heike Kamerlingh Onnes achieved temperatures of one degree above absolute zero of −273 degrees Celsius. In 1908 he was the first to succeed in liquifying helium, Kamerlingh Onnes was awarded the Nobel Prize for Physics in 1913. In 2005 the manuscript of Einstein on the theory of the monatomic ideal gas was discovered in one of Leidens libraries. Of the seventy-seven Spinozapremie, nineteen were granted to professors of the Universiteit Leiden, literary historian Frits van Oostrom was the first professor of Leiden to be granted the Spinoza award for his work on developing the NLCM centre into a top research centre.
Among other leading professors are Wim Blockmans, professor of Medieval History, the portraits of many famous professors since the earliest days hang in the university aula, one of the most memorable places, as Niebuhr called it, in the history of science. The University Library, which has more than 5 and it houses the largest collections worldwide on Indonesia and the Caribbean. Scholars from all over the world visit Leiden University Library, the oldest in the Netherlands, the anatomical and pathological laboratories of the university are modern, and the museums of geology and mineralogy have been restored
Leonid Vitaliyevich Kantorovich was a Soviet mathematician and economist, known for his theory and development of techniques for the optimal allocation of resources. He is regarded as the founder of linear programming and he was the winner of the Stalin Prize in 1949 and the Nobel Memorial Prize in Economics in 1975. Kantorovich was born on 19 January 1912, to a Russian Jewish family and his father was a doctor practicing in Saint Petersburg. In 1926, at the age of fourteen, he began his studies at the Leningrad University and he graduated from the Faculty of Mathematics in 1930, and began his graduate studies. In 1934, at the age of 22 years, he became a full professor, Kantorovich worked for the Soviet government. He was given the task of optimizing production in a plywood industry and he came up with the mathematical technique now known as linear programming, some years before it was advanced by George Dantzig. He authored several books including The Mathematical Method of Production Planning and Organization, for his work, Kantorovich was awarded the Stalin Prize in 1949.
After 1939, he became the professor of Military engineering-technical university, during the Siege of Leningrad, Kantorovich was the professor of VITU of Navy and in charge of safety on the Road of Life. He calculated the distance between cars on ice, depending on thickness of ice and temperature of the air. In December 1941 and January 1942, Kantorovich personally walked between cars driving on the ice of Lake Ladoga, on the Road of Life, to ensure the cars did not sink, many cars with food for survivors of the siege were destroyed by the German air-bombings. In 1948 Kantorovich was assigned to the project of the USSR. Since 1960, Kantorovich lived and worked in Novosibirsk, where he created, for his feat and courage Kantorovich was awarded the Order of the Patriotic War, and was decorated with the medal For Defense of Leningrad. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, in mathematical analysis, Kantorovich had important results in functional analysis, approximation theory, and operator theory.
In particular, Kantorovich formulated fundamental results in the theory of normed vector lattices, Kantorovich considered infinite-dimensional optimization problems, such as the Kantorovich-Monge problem in transportation theory. His analysis proposed the Kantorovich metric, which is used in probability theory, List of economists List of Russian mathematicians V. Makarov. Kantorovich, Leonid Vitaliyevich The New Palgrave, A Dictionary of Economics, v.3, Mathematical Methods of Organizing and Planning Production Management Science, Vol.6, No. Spreadsheet presenting all examples of Kantorovich,1939 with the OpenOffice. org Calc Solver as well as the lp_solver, princeton University Press and the RAND Corporation,1963. Cf. p.22 for the work of Kantorovich, on an Industrial Programming Problem of Kantorovich, Management Science, Vol.8, No
Production theory is the study of production, or the economic process of converting inputs into outputs. Production uses resources to create a good or service that is suitable for use, gift-giving in a gift economy and this can include manufacturing, storing and packaging. Some economists define production broadly as all economic activity other than consumption and they see every commercial activity other than the final purchase as some form of production. Production is a process, and as such it occurs through time, because it is a flow concept, production is measured as a “rate of output per period of time”. Production is a process that combines various material inputs and immaterial inputs to make something for consumption and it is the act of creating output, a good or service that has value and contributes to the utility of individuals. Economic well-being is created in a process, meaning all economic activities that aim directly or indirectly to satisfy human needs. The degree to which the needs are satisfied is often accepted as a measure of economic well-being, in production, two features explain increasing economic well-being.
They are improving quality-price-ratio of commodities and increasing incomes from growing, all of them produce commodities that have value and contribute to well-being of individuals. The satisfaction of needs originates from the use of the commodities produced, the need satisfaction increases when the quality-price-ratio of the commodities improves and more satisfaction is achieved at less cost. To the procucer, improving product competitiveness often means lower product prices, and therefore losses in incomes, Economic well-being increases due to the growth of incomes that are gained from the growing and more efficient market production. Market production is the one production form that creates and distributes incomes to stakeholders. Public production and household production are financed by the incomes generated in market production, thus market production has a double role in creating well-being, i. e. the role of producing developing commodities and the role to creating income. Because of this double role market production is the “primus motor” of economic well-being, in principle there are two main activities in an economy and consumption.
Similarly there are two kinds of actors and consumers, well-being is made possible by efficient production and by the interaction between producers and consumers. In the interaction, consumers can be identified in two roles both of which generate well-being, consumers can be both customers of the producers and suppliers to the producers. Stakeholders of production are persons, groups or organizations with an interest in a producing company, Economic well-being originates in efficient production and it is distributed through the interaction between the company’s stakeholders. Stakeholders of companies are economic actors with an economic interest in a company, based on the similarities of their interests, stakeholders can be classified into three groups to differentiate their interests and mutual relations. The three groups are, Customers Suppliers Producers The interests of stakeholders and their relations to companies are described briefly below
Amsterdam is the capital and most populous municipality of the Kingdom of the Netherlands. Its status as the capital is mandated by the Constitution of the Netherlands, although it is not the seat of the government, which is The Hague. Amsterdam has a population of 851,373 within the city proper,1,351,587 in the urban area, the city is located in the province of North Holland in the west of the country. The metropolitan area comprises much of the part of the Randstad, one of the larger conurbations in Europe. Amsterdams name derives from Amstelredamme, indicative of the citys origin around a dam in the river Amstel, during that time, the city was the leading centre for finance and diamonds. In the 19th and 20th centuries the city expanded, and many new neighborhoods and suburbs were planned, the 17th-century canals of Amsterdam and the 19–20th century Defence Line of Amsterdam are on the UNESCO World Heritage List. As the commercial capital of the Netherlands and one of the top financial centres in Europe, Amsterdam is considered a world city by the Globalization.
The city is the capital of the Netherlands. Many large Dutch institutions have their headquarters there, and seven of the worlds 500 largest companies, including Philips and ING, are based in the city. In 2012, Amsterdam was ranked the second best city to live in by the Economist Intelligence Unit and 12th globally on quality of living for environment, the city was ranked 3rd in innovation by Australian innovation agency 2thinknow in their Innovation Cities Index 2009. The Amsterdam seaport to this day remains the second in the country, famous Amsterdam residents include the diarist Anne Frank, artists Rembrandt van Rijn and Vincent van Gogh, and philosopher Baruch Spinoza. The Amsterdam Stock Exchange, the oldest stock exchange in the world, is located in the city center. After the floods of 1170 and 1173, locals near the river Amstel built a bridge over the river, the earliest recorded use of that name is in a document dated October 27,1275, which exempted inhabitants of the village from paying bridge tolls to Count Floris V.
This allowed the inhabitants of the village of Aemstelredamme to travel freely through the County of Holland, paying no tolls at bridges, the certificate describes the inhabitants as homines manentes apud Amestelledamme. By 1327, the name had developed into Aemsterdam, Amsterdam is much younger than Dutch cities such as Nijmegen and Utrecht. In October 2008, historical geographer Chris de Bont suggested that the land around Amsterdam was being reclaimed as early as the late 10th century. This does not necessarily mean there was already a settlement then, since reclamation of land may not have been for farming—it may have been for peat. Amsterdam was granted city rights in either 1300 or 1306, from the 14th century on, Amsterdam flourished, largely from trade with the Hanseatic League
S-Graveland is a village in the Dutch province of North Holland. It is a part of the municipality of Wijdemeren, and lies about 4 km northwest of Hilversum, the former municipality of s-Graveland merged with Loosdrecht and Nederhorst den Berg on 1 January 2002 to form the new municipality Wijdemeren. The statistical district s-Graveland, which covers the village and the countryside, has a population of around 1180. The Dutch musician Gustav Leonhardt was born here in 1928, J. Kuyper, Gemeente Atlas van Nederland, 1865-1870, s-Graveland. Map of the municipality, around 1868
Trygve Magnus Haavelmo, born in Skedsmo, was an influential economist with main research interests centered on the fields of econometrics. After attending Oslo Cathedral School, he received a degree in economics from the University of Oslo in 1930, Haavelmo was Frisch’s assistant for a period of time until he was appointed as head of computations for the institute. In 1936, Haavelmo studied statistics at University College London while he traveled to Berlin, Geneva. During World War II he worked with Nortraship in the Statistical Department in New York City and he received his Ph. D. in 1946 for his work on The Probability Approach in Econometrics. He was a Professor of economics and statistics at the University of Oslo between 1948–79 and was the department head of division from 1947–48. Haavelmo acquires a prominent position in economics through his logical critique of a series of custom conceptions in mathematical analysis. In 1989, Haavelmo was awarded the Nobel Prize in Economics for his clarification of the probability foundations of econometrics.
He died on 28 July 1999 in Oslo and it was first operationalized by Robert H. Strotz and Herman Wold who advocated wiping out selected equations, and translated into graphical models as wiping out incoming arrows. This operation has led to Pearls do-calculus and to a mathematical theory of counterfactuals in econometric models. List of publications nobelprize. org bio Nobel Prize Lecture. at the Wayback Machine Model Discovery and Trygve Haavelmo’s Legacy by David F. Hendry, Trygve Haavelmo and the Emergence of Causal Calculus. Forthcoming, Econometric Theory, special issue on Haavelmo Centennial, UCLA Computer Science Department, Technical Report R-391. Regression and Causation, A Critical Examination of Six Econometrics Textbooks
Nobel Memorial Prize in Economic Sciences
The prize was established in 1968 by a donation from Swedens central bank, the Swedish National Bank, on the banks 300th anniversary. Although it is not one of the prizes that Alfred Nobel established in his will in 1895, laureates are announced with the other Nobel Prize laureates, and receive the award at the same ceremony. Laureates in the Memorial Prize in Economics are selected by the Royal Swedish Academy of Sciences and it was first awarded in 1969 to the Dutch and Norwegian economists Jan Tinbergen and Ragnar Frisch, for having developed and applied dynamic models for the analysis of economic processes. An endowment in perpetuity from Sveriges Riksbank pays the Nobel Foundations administrative expenses associated with the prize, since 2012, the monetary portion of the Prize in Economics has totalled 8 million Swedish kronor. This is equivalent to the amount given for the original Nobel Prizes, the Prize in Economics is not one of the original Nobel Prizes created by Alfred Nobels will.
However, the process, selection criteria, and awards presentation of the Prize in Economic Sciences are performed in a manner similar to that of the Nobel Prizes. Laureates are announced with the Nobel Prize laureates, and receive the award at the same ceremony, shall have conferred the greatest benefit on mankind. According to its website, the Royal Swedish Academy of Sciences administers a researcher exchange with academies in other countries and publishes six scientific journals. Members of the Academy and former laureates are authorised to nominate candidates, all proposals and their supporting evidence must be received before February 1. The proposals are reviewed by the Prize Committee and specially appointed experts, before the end of September, the committee chooses potential laureates. If there is a tie, the chairman of the committee casts the deciding vote, the potential laureates must be approved by the Royal Swedish Academy of Sciences. Members of the Ninth Class of the Academy vote in mid-October to determine the next laureate or laureates of the Prize in Economics.
The first prize in economics was awarded in 1969 to Ragnar Frisch, in 2009, Elinor Ostrom became the first woman awarded the prize. This makes it available to researchers in such topics as political science, moreover, the composition of the Economics Prize Committee changed to include two non-economists. This has not been confirmed by the Economics Prize Committee, the members of the 2007 Economics Prize Committee are still dominated by economists, as the secretary and four of the five members are professors of economics. Some critics argue that the prestige of the Prize in Economics derives in part from its association with the Nobel Prizes, among them is the Swedish human rights lawyer Peter Nobel, a great-grandson of Ludvig Nobel. Nobel criticizes the institution of misusing his familys name. He explaiend that Nobel despised people who cared more about profits than societys well-being and this does not matter in the natural sciences
Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. An advantage claimed for the approach is its allowing formulation of theoretical relationships with rigor, Mathematics allows economists to form meaningful, testable propositions about wide-ranging and complex subjects which could less easily be expressed informally. Further, the language of mathematics allows economists to make specific, much of economic theory is currently presented in terms of mathematical economic models, a set of stylized and simplified mathematical relationships asserted to clarify assumptions and implications. This rapid systematizing of economics alarmed critics of the discipline as well as some noted economists, the use of mathematics in the service of social and economic analysis dates back to the 17th century. Then, mainly in German universities, a style of instruction emerged which dealt specifically with detailed presentation of data as it related to public administration, gottfried Achenwall lectured in this fashion, coining the term statistics.
At the same time, a group of professors in England established a method of reasoning by figures upon things relating to government. Pettys use of detailed numerical data would influence statisticians and economists for some time, the mathematization of economics began in earnest in the 19th century. Most of the analysis of the time was what would be called classical economics. Subjects were discussed and dispensed with through algebraic means, but calculus was not used, more importantly, until Johann Heinrich von Thünens The Isolated State in 1826, economists did not develop explicit and abstract models for behavior in order to apply the tools of mathematics. Thünens model of farmland use represents the first example of marginal analysis, Thünens work was largely theoretical, but he mined empirical data in order to attempt to support his generalizations. In comparison to his contemporaries, Thünen built economic models and tools and these included W. S. Jevons who presented paper on a general mathematical theory of political economy in 1862, providing an outline for use of the theory of marginal utility in political economy.
In 1871, he published The Principles of Political Economy, declaring that the subject as science must be simply because it deals with quantities. Jevons expected the only collection of statistics for price and quantities would permit the subject as presented to become an exact science, others preceded and followed in expanding mathematical representations of economic problems. At the time, it was thought that utility was quantifiable, Cournot and Francis Ysidro Edgeworth are considered the precursors to modern mathematical economics. Cournot, a professor of mathematics, developed a treatment in 1838 for duopoly—a market condition defined by competition between two sellers. This treatment of competition, first published in Researches into the Mathematical Principles of Wealth, is referred to as Cournot duopoly and it is assumed that both sellers had equal access to the market and could produce their goods without cost. Further, it assumed that both goods were homogeneous, each seller would vary her output based on the output of the other and the market price would be determined by the total quantity supplied.
The profit for each firm would be determined by multiplying their output, Cournots contributions to the mathematization of economics would be neglected for decades, but eventually influenced many of the marginalists