Stylized facts

Updated: Aug 20, 2021

Empirical observations used as a starting point for the construction of economic theories. A stylized fact must be true in general, but not necessarily in every case. For example, it is a stylized fact that the shares of capital and labour in national income have been constant over time. This is true approximately for most countries, but is not exactly true for any country, nor approximately true for all countries.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.