J Curve

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J Curve

1. In charting, the theoretical trend of a country's trade balance after the devaluation of its currency. After a devaluation in currency, there is often a slight increase in the trade deficit, but the long-term effect is a trade surplus due to the fact that a good sold in a devalued currency makes a good less expensive for international buyers. This is represented graphically as a curve that briefly dips below the x-axis, representing time, before turning upwards, resembling the letter J. On this graph, the y-axis represents the trade balance.

2. In equity funds, the theoretical trend of the internal rate of return over several years. Most funds operate at a loss at their beginning, due in part to their start-up costs. Later, if the fund is successful, the internal rate of return rises significantly. This is represented graphically as a curve that briefly dips below the x-axis, representing time, before turning upwards, resembling the letter J. On this graph, the y-axis represents the internal rate of return.
References in periodicals archive ?
The TPC curves or the J-curves are all computed usingthe same tubing size but with various tubing surface pressures.
Introductory texts on environmental science for undergraduates express the key ideas with simple graphs of J-curves and S-curves and avoid the differential equations, which are unlikely to be intelligible to this book's target audience.
Other questions include comparing your profitability to others in the same industry and importantly how we are balancing profit and loss J-curves.
The result, he claimed, was that the distribution of behaviour represented two steep back-to-back J-curves, which considered together have a sharper peak than the characteristic bell-shaped normal distribution.
Secondly, subjective interpretation of curves, sometimes based on relatively small numbers of subjects, invites the question of whether the back-to-back J-curves are really any different from the normal distribution.
Floyd Allport's J-curve of institutional conformity
He went further to argue that the J-curve was an inevitable result of social control and that the existence of rules and laws would always push the distribution into this characteristic shape:
One obvious criticism of Allport's position is that the J-curve is just one half of the bell-shaped normal distribution, relating to lack of compliance to regulations.
Perhaps the most direct method for selecting an impact-cushioning material is the use of cushioning efficiency curves, or J-curves (see figure 1).
Use of J-curves allows the easy selection of materials to accommodate an actual shock event.
J-curves are generated using standard impact tests, and can be obtained for practically any type of material or component.
J-curves prove invaluable in the selection of materials, as they clearly indicate the energy density, or impact severity, over which a material is effective.