Lead-lag effect
Encyclopedia
A lead–lag effect, especially in economics
, describes the situation where one (leading) variable is correlated with the values of another (lagging) variable at later times.
For example, economists have found that in some circumstances there is a lead-lag effect between large-capitalization and small-capitalization stock-portfolio prices.
(A loosely related concept is that of lead-lag compensator
s in control theory, but this is not generally referred to specifically as a "lead-lag effect.")
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, describes the situation where one (leading) variable is correlated with the values of another (lagging) variable at later times.
For example, economists have found that in some circumstances there is a lead-lag effect between large-capitalization and small-capitalization stock-portfolio prices.
(A loosely related concept is that of lead-lag compensator
Lead-lag compensator
A lead–lag compensator is a component in a control system that improves an undesirable frequency response in a feedback and control system. It is a fundamental building block in classical control theory.- Applications :...
s in control theory, but this is not generally referred to specifically as a "lead-lag effect.")