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Business economics is a field in
applied economics Applied economics is the application of economic theory Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Con ...
which uses
economic theory Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. ...
and quantitative methods to analyze
business enterprises
business enterprises
and the factors contributing to the diversity of organizational structures and the relationships of firms with labour,
capital Capital most commonly refers to: * Capital letter Letter case (or just case) is the distinction between the letters that are in larger uppercase or capitals (or more formally ''majuscule'') and smaller lowercase (or more formally ''minusc ...
and product markets.Moschandreas, Maria (2000). ''Business Economics'', 2nd Edition, Thompson Learning,
Description
and chapter-previe
links
A professional focus of the journal ''
Business Economics Business economics is a field in applied economics Applied economics is the application of economic theory Economics () is the social science that studies how people interact with value; in particular, the Production (economics), produc ...
'' has been expressed as providing "practical information for people who apply economics in their jobs." Business economics is an integral part of traditional economics and is an extension of economic concepts to the real business situations. It is an applied science in the sense of a tool of managerial decision-making and forward planning by management. In other words, business economics is concerned with the application of economic theory to business management. Business economics is based on microeconomics in two categories: positive and normative. Business economics focuses on the economic issues and problems related to business organization, management, and strategy. Issues and problems include: an explanation of why ''corporate'' firms emerge and exist; why they expand: horizontally, vertically and spacially; the role of entrepreneurs and entrepreneurship; the significance of organizational structure; the relationship of firms with employees, providers of capital, customers, and government; and interactions between firms and the business environment.


Ambiguity in the use of term

The term 'business economics' is used in a variety of ways. Sometimes it is used as synonymously with industrial economics/
industrial organisation In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and market (economics), markets. Industrial organization adds real-world complica ...
,
managerial economics Managerial economics is a branch of economics which deals with the application of economic concepts, theories, tools, and methodologies to solve practical problems in a business. Managerial economics analyzes the economic implications of short- and ...
, and economics for business. Still, there may be substantial differences in the usage of 'economics for business' and 'managerial economics' with the latter used more narrowly. One view of the distinctions between these would be that business economics is wider in its scope than industrial economics in that it would be concerned not only with "industry" but also businesses in the service sector. Economics for business looks at the major principles of economics but focuses on applying these economic principles to the real world of business. Managerial economics is the application of economic methods in the managerial decision-making process.


Interpretations from various universities

Many universities offer courses in business economics and offer a range of interpretations as to the meaning of the word. The Bachelor of Business Economics (BBE) Program at
University of Delhi The University of Delhi, informally known as Delhi University (DU), is a collegiate university, collegiate public university, public Central university (India), central university located in New Delhi, India. It was founded in 1922 by an Act of ...
is designed to meet the growing need for an analytical and quantitative approach to problem solving in the changing corporate world by the application of the latest techniques evolved in the fields of economics and business. The
Autonomous University of Barcelona The Autonomous University of Barcelona ( ca, Universitat Autònoma de Barcelona; , es, Universidad Autónoma de Barcelona; UAB), is a public university mostly located in Cerdanyola del Vallès, near the city of Barcelona in Catalonia, Spain. ...
(UAB), the Universidad Pública de Navarra (UPNa) and the
University of the Balearic Islands The University of the Balearic Islands ( ca, Universitat de les Illes Balears, UIB; es, Universidad de las Islas Baleares ) is a Balearic Spanish university A university ( la, universitas, 'a whole') is an educational institution, institutio ...
(UIB) developed an official Master of Science in Management, Organization and Business Economics focused on management and business topics to train professionals in the study of organizations, on a conceptual and quantitative basis. To achieve this, advanced analysis tools are used from the fields of
Neoclassical economics Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are driven by the supply and demand In microeconomics, supply and demand is an economic model In econo ...
,
New institutional economics New institutional economics (NIE) is an economic perspective that attempts to extend economics by focusing on the institutions (that is to say the sociology, social and legal Norm (sociology), norms and rules) that underlie economic activity and ...
,
Statistics Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data Data (; ) are individual facts, statistics, or items of information, often numeric. In a more technical sens ...

Statistics
,
Econometrics Econometrics is the application of Statistics, statistical methods to economic data in order to give Empirical evidence, empirical content to economic relationships.M. Hashem Pesaran (1987). "Econometrics," ''The New Palgrave: A Dictionary of Econ ...

Econometrics
and Operations research. This focus is complemented with contributing ideas and theories to develop the necessary instruments to facilitate the management of sophisticated and complex organizations. The program at
Harvard University Harvard University is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdom, British singer Dusty Springfield, after an absence of nearly t ...

Harvard University
uses economic methods to analyze practical aspects of business, including
business administration Business administration (also known as business management) is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations. From the point of view of management Management (or man ...
, management, and related fields of business economics. The
Universidad del Desarrollo Universidad del Desarrollo (Spanish for "University for development") is a Chile Chile (, ; ), officially the Republic of Chile (), is a country in western South America. It occupies a long, narrow strip of land between the Andes to the ea ...
, in Chile follows on Harvard University definition, adding entrepreurnship as a field of business. The
University of Miami The University of Miami (informally referred to as UM, Miami, UMiami, U of M or The U) is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdo ...
defines business economics as involving the study of how we use our resources for the production, distribution, and consumption of goods and services. This requires business economists to analyze social institutions, banks, the stock market, the government and their relationships with labor negotiations, taxes, international trade, and urban and environmental issues. Courses at the
University of Manchester , mottoeng = Knowledge, Wisdom, Humanity , established = 2004 – University of Manchester Predecessor institutions: 1956 – UMIST , mottoeng = By Knowledge and Work , established = 1824 , closed = 2004 (merge ...

University of Manchester
interpret business economics to be concerned with the economic analysis of how businesses contribute to welfare of society rather than on the welfare of an individual or a business. This is done via an examination of the relationship between ownership, control and firm objectives; theories of the growth of the firm; the behavioural
theory of the firm The theory of the firm consists of a number of economic theories Economics () is the social science that studies how people interact with value; in particular, the production, distribution, and consumption of goods and services Goo ...
; theories of entrepreneurship; the factors that influence the structure, conduct and performance of business at the industry level. Italian universities borrow their concept of business economics from the tradition of
Gino Zappa Gino Zappa (Milan, 1879 - Venice, 1960) was an Italian economist. Biography He was a professor at Bocconi University in Milan and University Ca'Foscari of Venice, where he was also Rector. Zappa dedicated his life to the study of business economic ...

Gino Zappa
, for example a standard course at the
Politecnico di Milano The Polytechnic University of Milan () is the largest technical university Technical may refer to: * Technical (vehicle), an improvised fighting vehicle * Technical analysis, a discipline for forecasting the future direction of prices through ...

Politecnico di Milano
involves studying
corporate governance Corporate governance is the collection of mechanisms, processes and relations used by various parties to control and to operate a corporation A corporation is an organization—usually a group of people or a company—authorized by the St ...
,
accounting Accounting or Accountancy is the measurement ' Measurement is the number, numerical quantification (science), quantification of the variable and attribute (research), attributes of an object or event, which can be used to compare with other ob ...
,
investment analysis In finance Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of money and investments. Savers and investors have money availabl ...
,
budgeting A budget is a financial plan for a defined accounting period, period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, Liability (financial accounting), liabilities and cash ...
and
business strategy In the field of management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, We ...
.
La Trobe University La Trobe University is a public university, public research university based in Melbourne, Victoria (Australia), Victoria, Australia. Its main campus is located in the Melbourne suburb of Bundoora, Victoria, Bundoora. The university was establish ...

La Trobe University
of Melbourne, Australia associates business economics with the process of demand, supply and equilibrium coordinating the behaviour of individuals and businesses in the market. Also, business economics extends to government policy, economic variables and international factors which influence business and competition.


See also

*
Industrial organisation In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and market (economics), markets. Industrial organization adds real-world complica ...
* Business studies


Note


External links

*
National Association for Business Economics The National Association for Business Economics (NABE) is the largest international association of applied economists, strategists, academics, and policy-makers committed to the application of economics. Founded in 1959, it is one of the member or ...
(NABE, United States)
Homepage

Canadian Association for Business Economics (CABE)

Australian Business Economists
{{Authority control Business education