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Dunlop, John Thomas, 1914- (B3)<br />A leading US expositor of labour economics educated at the University of California at Berkeley. Apart from governmental posts, including being US Secretary of Labor from 1975 to 1976, he has held a succession of academic posts at Harvard University from 1936. His chief research interests have been wage determination and labour management relations in many national economies, including those of the USA, Eastern Europe and the Third World. His detailed work on the relationship between MARKET STRUCTURES and wage setting contributed to the analytical linking of INDUSTRIAL ORGANIZATION and labour economics.<br /><em>Reference</em><br />Dunlop, J.T. (1944) Wage Determination under Trade Unions, New York: Macmillan.<br /> - (1957) The Theory of Wage Determination, New York: Macmillan.<br /> Dunlop, J.T., Kerr, C., Harbison, F.H. and Myers, C.A. (1960) Industrialism and Industrial Man, Cambridge, MA: Harvard University Press.

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<strong>Anticipated disbursement date</strong> – The date loan funds are expected to be issued to the school or escrow agent. A school establishes the anticipated disbursement date(s) for a loan at the time of certification.

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hierarchy theory (J3)<br />An attempt to explain the wage structure through taking into account the fact that managers are arranged in hierarchies according to their relative decision-making power. An application of the THEORY OF THE FIRM.

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monopsony (DO)<br />The sole buyer in a particular market. In product markets, public authorities are the major examples, e.g. the UK's National Health Service; in labour markets, any large firm employing a large proportion of the industry's workforce. As a monopsonist faces an upward-sloping factor supply curve, its MARGINAL cosT curve is above its average cost curve. Monopsonistic firms employ fewer workers at lower wages than competitive firms, if they are PROFIT MAXIMIZERS.
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<strong>Federal Family Education Loan Program (FFELP)</strong> – Federal student loans that were authorized by Title IV, Part B, of the Higher Education Act of 1965, as amended. FFEL Program loans are funded by private lenders and are guaranteed by state agencies or other non-profit organizations. FFEL Program loans include Federal Stafford (subsidized and unsubsidized), Federal PLUS (for parents or for graduate/professional students), and Federal Consolidation Loans.

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<strong>Smart Approach to Student Loans and Consumer Debt</strong> - A comprehensive guide to understanding a student loan from start to finish. This publication and all publications published by the MDHE can be requested on the Publications Order Form: http://www.dhe.mo.gov/publicationsorderform.shtml.
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<strong>Need cutoff</strong> – The need amount that students had to demonstrate to qualify for the Gallagher and College Guarantee Programs through the 2006-07 academic year. The MDHE estimated the need cutoff in the spring of each year before final appropriations and student eligibility was known. The actual need cutoff was then determined prior to setting spending authority in FAMOUS.

<strong>Web loan delivery product</strong> – An online system that allows schools, borrowers, and/or lenders to inquire on loans or borrowers, submit change transactions, manage files, and guarantee new loans via the internet. The MDHE' s product is called MODEL Direct.
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<strong>Default Aversion Assistance (DAA)</strong> – Assistance provided to a lender by the guarantor in order to prevent a delinquent loan from defaulting.

<strong>Totally and permanently disabled</strong> – the condition of an individual who is unable to work and earn money due to an injury or illness that is expected to continue indefinitely or eventually result in death.

job sharing (J2)<br />The splitting of full-time jobs so that each job is performed by two persons. This type of scheme is primarily proposed as a means of reducing unemployment by converting full-time jobs into part-time jobs. The occupations for which this has been tried include teaching and social work. It is always feared that sharing will lead to an increase in total labour costs, especially social security contributions, recruitment and training costs. However, shorter hours raise productivity as the division of jobs reduces the boredom which comes from long hours spent on the same task.
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absorptive capacity (E2)<br />1 The physical limit to the amount of investment because PRODUCTIVITY declines as the rate of investment increases.<br /> 2 The extent to which a country can increase investment without depressing returns to that investment.<br /><em>Reference</em><br />Adler, J. (1965) Absorptive Capacity: the Concept and its Determinants, Washington, DC: Brookings Institution.

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postmodern economics (A1)<br />An epistemological critique of modern economic theory that takes into account the community producing such knowledge. It attacks the use of a deterministic 'scientific' methodology economics and a GENERAL EQUILIBRIUM approach in favour of recognizing indeterminacy, uncertainty, the randomness and multiplicity of possible causes. In its analysis of LATE CAPITALISM it recognizes the fragmented nature of modem life and the many motivations inspiring economic conduct.<br /> <br /><em>Reference</em><br />Cullenberg, S., Amariglio, J. and Ruccio, D.F (2001) Postmodernism, Economics and Knowledge, London and New York: Routledge.

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endogenous growth theory (04)<br />An explanation of ECONOMIC GROWTH as the product of the structural features of an ECONOMY. An early theory was HARROD'S warranted rate of growth that made the growth rate depend on the savings ratio and output-capital ratio, both structural features. Later versions of this theory had foundations in microeconomics and emphasized the contribution of accumulated HUMAN CAPITAL to increased productivity. endowment (A1)<br />1 An original asset, especially land; inherent ability.<br /> 2 Something of value bestowed upon another.

shutdown price (DO)<br />A minimum price equal to the short-run average VARIABLE cosr. Below this price, firms would prefer to shut down rather than accept a lower price and incur losses, including payments needed to cover FIXED COSTS.

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<strong>Add Loan</strong> – Application processing feature within MODEL Direct. The Add Loan process provides a realtime guarantee for loan applications.
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output budgeting (H6, M2)<br />The division of an organization's budget into sub-budgets so that expenditures and output can be compared. Although this disaggregation is often arbitrary, it is a conscious attempt to improve the effectiveness of expenditure, particularly in the US public sector. Also known as the PLANN!NG, PROGRAMM!NG, BUDGET!NG system.
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reinsurance (G2)<br />Spreading an insurance risk by making a treaty with other insurance companies to accept part of the risk in return for a share of premium income - hence this has been described as 'insuring the insurer'. Large assets such as ships and aircraft could not be insured if reinsurance were not available.

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private cost of unemployment (J6)<br />Loss of employment income and unquantifiable personal stress.<br /><em>See also:</em> social cost of unemployment

<strong>CB</strong> – The abbreviation for Campus-Based aid. Campus-based aid programs include Federal Work Study (FWS), the Federal Perkins Loan Program, and the Federal Supplemental Educational Opportunity Grant (FSEOG). “CB” also indicates a type of Dear Colleague Letter specifically addressing campus-based aid programs.

<strong>Income-sensitive repayment schedule</strong> – A repayment schedule for some FFEL Program loans under which the borrower' s monthly payment amount is adjusted annually, based solely on the borrower' s expected total monthly gross income received.
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equilibrium (DO, EO)<br />A state of balance such that a set of selected interrelated variables has no inherent tendency to change. In economics, a major example is the balance of the forces equating demand and supply. sMITH in his discussion of prices used the idea of market prices fluctuating around the NATURAL PRICE which can be considered a central price. The SUBSISTENCE THEORY OF WAGES regarded expansions and contractions of a population as equilibrating forces making the subsistence wage rate the long-run equilibrium wage. An equilibrium can exist for an economy as a whole, for a sector of it, for a particular market or for an institution, such as a firm. Although the term is applied principally to static models, there can be an equilibrium in dynamic models when variables proceed along an equilibrium-type path. Equilibria can be stable or unstable, temporary or permanent: some of them do not exist. The Marshallian and Keynesian cross-diagrams are the most famous diagrammatical representations of equilibrium (E, equilibrium). National income<br /><em>See also:</em> general equilibrium; temporary equilibrium<br /><em>Reference</em><br /> Amendola, M. and Gaffard, J.-L. (1998) Out of equilibrium, Oxford and New York: Clarendon Press.<br /> Caravale, G. (ed.) (1997) Equilibrium and economic theory, London and New York: Routledge.<br /> Fisher, F.M. (1983) Disequilibrium Foundations of Equilibrium Economics, Cambridge: Cambridge University Press.<br /> Samuelson, P.A. (1965) Foundations of Economic Analysis, 2nd edn, New York: Athenaeum.

absolute tax incidence (H2)<br />The burden of a particular tax compared with a situation in which there are no taxes or governmental expenditures.<br /><em>See also:</em> tax incidence
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<strong>CPS</strong> – Central Processing System, a company that is contracted by the U.S. Department of Education to process the Free Application for Federal Student Aid (FAFSA).

<strong>Notice of Loan Approval (NOLA)</strong> – A paper copy of the MDHE' s loan guarantee statement which schools may receive if profiled for this service.
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<strong>T-bill</strong> – A note or bill issued by the U.S. Treasury as legal tender for all debts. The T-bill is used to calculate variable interest rates for federal student loans made prior to July 1, 2006, and to determine special allowance rates.
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