long run

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Long run

A period of time in which all costs are variable; longer than one year.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Long Run

Informal for long term. The term is notable for John Maynard Keynes' quote, "In the long run, we are all dead."
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

long run

an abstract time period (in the THEORY OF SUPPLY) long enough for all FACTOR INPUTS to be varied, but within an existing technological framework (known production methods). Thus, the firm's plant size, which is fixed in the short run, can now be altered to allow for an increased scale of operations.

In the VERY LONG RUN, the technological framework itself changes as a result of new INVENTIONS and knowledge. Compare SHORT RUN. See also ECONOMIES OF SCALE, DISECONOMIES OF SCALE, RETURNS TO SCALE.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
We examine the long-run averages of real interest rates and these related variables for 20 countries during the past 60 years or so.
That is, we will identify which brands compete with each other in the long-run and the short-run.
Another approach, called long-run risks or LRR, emphasizes variations in the long-run growth rate and the variance of shocks to the growth rate (stochastic volatility).
Further, when the long-run (i.e., up to five years) impact of IPO market timing on issuing firms' capital structure is examined, that market timing does not have a persistent impact on issuing firms' capital structure.
Bansal also posits that cash flows on particular portfolios differ in the extent to which they are subject to long-run risks that are more or less correlated with the long-run risk in aggregate consumption.
With respect to aggregate supply, there appears to be universal agreement that the long-run aggregate supply curve is vertical at the full-employment level of real gross domestic product.
My answer is that a good chunk is a sustainable, long-run development reflecting improved business practices in the U.S., greater flexibility of the labor force and application of new technology.
Key factors determining the increase in rents and home prices include (1) the increase in demand for housing in the private sector resulting from the reduction of on-base naval housing, (2) the short-run and long-run elasticities of supply of private sector housing with respect to housing prices, and (3) the elasticity of demand to live in a defined housing area with respect to housing prices.
Low, long-run elasticities of the trade balance with respect to the real effective exchange rate indicate that a substantial change in relative prices should be made to considerably improve trade accounts.
For example, Lucas (1972) and Sargent (1971) provide examples in which it is impossible to test long-run neutrality using reduced-form econometric methods.
However, unlike Bentzen and Engsted, I do not estimate the long-run relationship, or cointegrating vector, from a simple static regression as suggested by Engle and Granger.

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