|
|
Asset substitution |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Asset substitutionOccurs when a firm invests in assets that are riskier than those that the debtholders expected.Asset substitution Similar MatchesConstant elasticity of substitution functionConstant elasticity of substitution functionSee CES function Substitution swapSubstitution swapA swap in which a money manager exchanges one bond for another bond that is similar in terms of coupon, maturity, and credit quality, but that offers a higher yield. Import substitutionImport substitutionA strategy for economic development that replaces imports with domestic production. It may be motivated by the infant industry argument, or simply by the desire to mimic the industrial structure of advanced countries. Contrasts with export promotion. Elasticity of substitutionElasticity of substitutionThe elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities). With competitive demands, this is also the elasticity with respect to their price ratio. For example, with factors L,K and factor prices w,r, the elasticity of substitution of a production function F(K,L) is s = (wL/rK)d(K/L)/d(w/r). Substitution effectSubstitution effectThat portion of the effect of price on quantity demanded that reflects the changed tradeoff between the good and other alternatives. Contrasts with income effect. Further SuggestionsMarginal rate of substitutionSame day substitution No Substitution Import substitution development strategy |
|
|
|