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.....
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.....
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.....
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.....
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.....
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.....
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.....
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.....
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.....
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.....
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.....
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.....