science

Recession index

Recession index is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Recession index rather than just read about it. In short: The recession index (the R-word index) is an informal index created by The Economist which counts how many stories in The Washington Post and The New York Times use the word “recession” in a quarter. This simple formula pinpointed the start of recessions in 1981, 1990, and 2001, but was misleading in the early 1990s, when the index indicated a recession for a year after it had officially ended in March 1991.

Key takeaways

Recession index belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Recession index to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Recession index from memory before moving on to harder problems.

Reference excerpt

The recession index (the R-word index) is an informal index created by The Economist which counts how many stories in The Washington Post and The New York Times use the word “recession” in a quarter. This simple formula pinpointed the start of recessions in 1981, 1990, and 2001, but was misleading in the early 1990s, when the index indicated a recession for a year after it had officially ended in March 1991. The index has inspired serious research into testing whether the tone and volume of economic reporting over time has affected people's perceptions. Mark Doms (Federal Reserve Bank of San Francisco) and Norman Morin (Board of Governors of the Federal Reserve System) (2004) created indexes based on the number of articles that contain certain keywords and phrases in the title or first paragraph in the thirty largest newspapers across the US. For instance, the "recession index" is based on the number of articles that mention "recession" or "economic slowdown.".

See also Big Mac Index Christmas Price Index List of unusual units of measurement List of humorous units of measurement

Sources "The recession index — Words that can harm you — Nov 21st 2002". The Economist. 2002-11-21. Archived from the original on 2012-10-11. Retrieved 2008-02-27. "R-word index — Warning lights". The Economist, WASHINGTON, DC. 2008-01-10. Archived from the original on 2008-09-26. Retrieved 2008-02-27.

References

Worked examples

Example 1 — a first encounter with Recession index

Start with the simplest possible case. Write down what Recession index claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Recession index before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Recession index ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Recession index

In research: Recession index appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Recession index in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Recession index is common in secondary-school and first-year university syllabi. It links to neighbouring topics Economic indicators, Recessions, The Economist, so understanding it makes those chapters shorter.
In everyday life: Look for Recession index outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Recession index in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Recession index means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Recession index out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Recession index in simple terms?

Why does Recession index matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Recession index?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Recession index.