The 25% rule is a heuristic that can refer to either public finance law or intellectual property law.
In public finance, the 25% rule dictates that a public entity’s total debt should not exceed one quarter of its annual budget.
In the field of intellectual property, the 25% rule implies a reasonable amount of royalties that the licensee must pay to the owner of the intellectual property from profits.
Economic efficiency is when every scarce resource in the economy is used and distributed between producers and consumers in such a way as to provide the greatest economic return and benefit to consumers.
The “golden rule” of public spending is fiscal policy, which says that the government should increase borrowing only in order to invest in projects that will pay off in the future.
A member of the World Bank Group, the International Finance Corporation (IFC) provides financing for investment by private enterprises in developing countries.
Overlapping debt is when the debt issued to finance the activities of the government falls on several political jurisdictions, while the joint debt is distributed among them.