What is the definition of a paradox in economics?

Paradox in economics is the situation where the variables fail to follow the generally laid principles and assumptions of the theory and behave in an opposite fashion. Paradoxes are very common in economics. Now let us see some of the famous paradoxes in economics:

Who is the author of the population paradox?

The Population Paradox by Christopher Doll is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License. Christopher Doll is a Research Fellow at United Nations University Institute of Advanced Studies.

What was the first theory of economic demography?

There is no doubt that the earliest theory of economic demography originated with Thomas Malthus (1798). The Malthusian model was a typical macroeconomic framework, and it can also be viewed as a classical theory of economic growth before the industrial revolution. The following is a simple adaptation of the Malthusian theory.

What is the definition of the paradox of thrift?

A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. Paradox of Thrift states that individuals try to save more during an economic recession, which essentially leads to a fall in economic growth.

Which is the result of Leontief’s paradox in economics?

Leontief’s paradox in economics is that a country with a higher capital-per worker has a lower capital/labour ratio in exports than in imports. This econometric find was the result of Wassily W. Leontief’s attempt to test the Heckscher–Ohlin theory empirically.

How did the Giffen goods paradox get its name?

Giffen goods are named after Scottish economist Sir Robert Giffen, to whom Alfred Marshall attributed this idea in his book Principles of Economics. Giffen first proposed the paradox from his observations of the purchasing habits of the Victorian era poor.

What is the meaning of the paradox of thrift?

The paradox of thrift (or paradox of saving) is a paradox of economics. The paradox states that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving.