AI reviewed · sources pending. Book associations have not been verified.
Short-run and long-run effects
ConceptThe effects of a decision can differ across time horizons.
Explanation or usage
An immediate benefit can come with later costs, while an immediate cost can support later benefits. Analysis should specify the period, affected people, and assumptions. A longer horizon does not automatically reverse a conclusion; it expands what must be checked.
Common misunderstandings
The immediate effect determines every later effect.
In Economics in One Lesson
General context reviewed · book attribution and sources pending
A useful lens for considering economic decisions is to look beyond immediate effects to later consequences and to people beyond those who benefit immediately.