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Coase Theorem |
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Coase TheoremThe proposition that the allocation of property rights does not matter for economic efficiency, so long as they are well defined and a free market exists for the exchange of rights between those who have them and those who do not. Due to Coase (1960).Similar MatchesGains from trade theoremGains from trade theoremThe theoretical proposition that (in the absence of distortions) there will be gains from trade for any economy that moves from autarky to free trade, as well as for a small open economy and for the world as a whole if tariffs are reduced appropriately. Due to Samuelson (1939, 1962). Factor Price Equalization TheoremFactor Price Equalization TheoremOne of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone. Mutual fund theoremMutual fund theoremA result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index or mutual fund. Separation theoremSeparation theoremTheory that the value of an investment to an individual is not dependent on consumption preferences. That is, investors will want to accept or reject the same investment projects by using the NPV rule, regardless of personal preference. Second theorem of welfare economicsSecond theorem of welfare economicsThe proposition of welfare economics that any Pareto optimal allocation can be attained by a competitive general equilibrium. Further SuggestionsRybczynski TheoremSpot futures parity theorem First theorem of welfare economics Interest rate parity theorem Heckscher-Ohlin Theorem Two fund separation theorem Kemp-Wan Theorem Central Limit Theorem Heckscher-Ohlin-Vanek Theorem Stolper-Samuelson Theorem Lerner Symmetry Theorem |
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