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IS-LM Model |
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IS-LM ModelA Keynesian macroeconomic model, popular especially in the 1960s, in which national income and the interest rate were determined by the intersection of two curves, the IS-curve and the LM-curve.Similar MatchesHeckscher-Ohlin ModelHeckscher-Ohlin ModelA model of international trade in which comparative advantage derives from differences in relative factor endowments across countries and differences in relative factor intensities across industries. Sometimes refers only to the textbook or 2x2x2 model, but more generally includes models with any numbers of factors, goods, and countries. Model was originally formulated by Heckscher (1919), fleshed out by Ohlin (1933), and refined by Samuelson (1948, 1949, 1953). Single index modelSingle index modelA model of stock returns that decomposes influences on returns into a systematic factor, as measured by the return on the broad market index, and firm specific factors. Related: Market Model Continuum modelContinuum modelA model in which some entities that are normally discrete and exist in finite numbers are modeled instead by a continuous variable. This can sometimes simplify the treatment of large numbers of entities. In trade theory, the most notable example is the continuum-of-goods model. Capital asset pricing modelCapital asset pricing modelA model for generating expected equity returns. It is based on the premise that returns are the reward for taking on risk, and that risk can be split into two types: stock-specific risk and market risk.Since stock-specific risk can be mitigated by diversification policies, investors should not be compensated for taking this on. Expected returns should only be a function of the share's response to returns on the market as a whole, which is given by the share's beta. Ricardo-Viner ModelRicardo-Viner ModelA specific factors model with a single specific factor in each industry and one mobile factor, named after two of the many who used this as the standard model of trade prior to the Heckscher-Ohlin Model. It extends the simple Ricardian Model by allowing the marginal product of labor to fall with output. It was revived by Jones (1971), Samuelson (1971), then merged with H-O by Mayer (1974), Mussa (1974), Neary (1978). Further SuggestionsBinomial option pricing modelFactor Proportions Model Pie model of capital structure Simple linear trend model Constant growth model Heckscher-Ohlin-Samuelson Model Static model 2x2x2 Model Business model Modeling Deterministic models Single factor model HOS Model Textbook Heckscher-Ohlin Model Dynamic model Mundell-Fleming Model Garman Kohlhagen option pricing model Stochastic models Revenue model Cairnes-Haberler Model Specific factors model International Asset Pricing Model (IAPM) DFS Model Index model Two state option pricing model |
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