Economics

GDP Deflator in Economics

GDP Deflator in Economics

In economics, the GDP deflator is a measure of the level of prices of all-new, domestically produced, final goods and services in an economy in a year. It measures the changes in prices for all of the goods and services produced in an economy. GDP stands for gross domestic product, the total mone.....

Read More »

Consumer Price Index

Consumer Price Index

A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical.....

Read More »

Hedonic Index

Hedonic Index

The term “hedonic” refers to the concept that the value of a home can be determined by looking at the value of the constituent components of a home. A hedonic index is any price index that uses information from hedonic regression, which describes how product price could be explained b.....

Read More »

Trade Union

Trade Union

A trade union is usually an association of wage earners formed for the purpose of their mutual help and improvement of the conditions of their employment. It is an organization made up of members and its membership must be made up mainly of workers. They are associations of workers or organizatio.....

Read More »

Hedonic Regression

Hedonic Regression

Hedonic regression is the use of a regression model to estimate the influence that various factors have on the price of a good, or sometimes the demand for a good. In economics, hedonic regression theory is a revealed preference method of estimating the demand for a good, or equivalently its valu.....

Read More »

Wage Differential

Wage Differential

Wage Differential A wage differential refers to the difference in wages between people with similar skills within different localities or industries. It is a term used in labor economics to analyze the relationship between the wage rate and the unpleasantness, risk, or other undesirable attribute.....

Read More »

Comparative Statics

Comparative Statics

Comparative Statics Most of the economic theory consists of comparative statics analysis. In economics, comparative statics is the comparison of two different economic outcomes, before and after a change in some underlying exogenous parameter. It is a tool used to predict the effects of exogenous.....

Read More »

Commodity Price Index

Commodity Price Index

Commodity Price Index A commodity price index is a fixed-weight index or (weighted) average of selected commodity prices, which may be based on spot or futures prices. A commodity index is an investment vehicle that tracks the price and the return on investment of a basket of commodities. It is d.....

Read More »

Shell Money

Shell Money

Shell money is a medium of exchange similar to coin money and other forms of commodity money and was once commonly used in many parts of the world. It is a medium of exchange consisting of shells, the most widely distributed type of ancient currency. The combination of shell and money is therefor.....

Read More »

Commodity Risk

Commodity Risk

Commodity risk is the threat of changes to a commodity price that may have a negative effect on future market value and income. It refers to the uncertainties of future market values and the size of the future income, caused by the fluctuation in the prices of commodities. It creates price risk f.....

Read More »

Commodity Currency

Commodity Currency

Commodity Currency refers to currencies in economies sensitive to changes in commodity prices, which often are countries that rely on commodity exports for their GDP. A commodity currency is a name given to some currencies that co-move with the world prices of primary commodity products, due to t.....

Read More »

Random Variable

Random Variable

A random variable (stochastic variable) is a variable with an undefined value or a function that assigns values to each of the results of an experiment. Since a random variable may take on various values, a letter (e.g. variable ‘X’) is usually called. Depending on the case, the rando.....

Read More »