---
entity_slug: permanent_versus_temporary_price_effects
evaluator: null
evaluated_at: '2026-02-23T06:05:25.113864'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes between two types of price effects
    based on their underlying causes and duration. While it could be more specific
    about timeframes, it captures a distinct analytical concept rather than being
    vague or circular.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This distinction is well-grounded in Smith's actual analysis throughout
    Book IV, where he consistently differentiates between price effects from structural
    economic factors versus temporary market disturbances. The examples cited (bounties,
    monopolies, currency degradation) are directly from Smith's text.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"General Theory" is the appropriate domain placement since this distinction
    represents a fundamental analytical framework that Smith applies across multiple
    specific economic phenomena. It''s a theoretical tool rather than a specific policy
    or market mechanism.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    it represents a diagnostic tool for distinguishing between fundamental environmental
    changes versus temporary fluctuations. It also has relevance to S2 (coordination/anti-oscillation)
    in managing temporary market disturbances.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by offering a framework
    for understanding why different price phenomena require different policy responses.
    It illuminates the structural mechanism behind effective economic analysis rather
    than merely naming a surface observation.
---

# Evaluation: Permanent Versus Temporary Price Effects

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes between two types of price effects based on their underlying causes and duration. While it could be more specific about timeframes, it captures a distinct analytical concept rather than being vague or circular.

## source_grounding — 5.0 / 5.0

This distinction is well-grounded in Smith's actual analysis throughout Book IV, where he consistently differentiates between price effects from structural economic factors versus temporary market disturbances. The examples cited (bounties, monopolies, currency degradation) are directly from Smith's text.

## domain_placement — 5.0 / 5.0

"General Theory" is the appropriate domain placement since this distinction represents a fundamental analytical framework that Smith applies across multiple specific economic phenomena. It's a theoretical tool rather than a specific policy or market mechanism.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as it represents a diagnostic tool for distinguishing between fundamental environmental changes versus temporary fluctuations. It also has relevance to S2 (coordination/anti-oscillation) in managing temporary market disturbances.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by offering a framework for understanding why different price phenomena require different policy responses. It illuminates the structural mechanism behind effective economic analysis rather than merely naming a surface observation.
