Category

Economics theorems

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Arrow's impossibility theorem

Result that no ranked-choice system is spoilerproof

economics theorem that if an externality can be traded with no transaction costs, bargaining leads to a Pareto efficient outcome regardless of the initial allocation of property

Heckscher–Ohlin theorem

Rybczynski theorem

Modigliani–Miller theorem

theorem that in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market, the enterprise value of a firm is unaffected by how that firm is financed

fundamental theorems of welfare economics

Complete, full information, perfectly competitive markets are Pareto efficient

Stolper–Samuelson theorem

economics theorem

Shephard's lemma

Gibbard–Satterthwaite theorem

theorem that deterministic ordinal electoral systems that choose a single winner are either dictatorial, binary choice, or susceptible to tactical voting

factor price equalization

economic theory by P. A. Samuelson, which states that the prices of identical factors of production will be equalized across countries due to international trade in commodities

envelope theorem

theorem in mathematics and economics

liberal paradox

in economic theory, the claim that no social system can simultaneously ① be committed to at least a minimal sense of freedom, ② always result in Pareto efficiency, and ③ be capable of functioning in any society

Henry George Theorem

economic theorem

Fisher separation theorem

Okishio's theorem

theorem that, if the real wage remains constant and if one capitalist raises his profits by cutting his costs, the collective rate of profit in society goes up for all capitalists

Frisch–Waugh–Lovell theorem

Theorem in statistics and econometrics

von Neumann–Morgenstern utility theorem

theorem that a rational decision-maker has a utility function

Sonnenschein–Mantel–Debreu theorem

theorem in general equilibrium economics about the excess demand curve

Aumann's agreement theorem

theorem in game theory about whether rational agents can agree to disagree

Bondareva–Shapley theorem

mathematical concept

Lerner symmetry theorem

result used in international trade theory