ceteris paribus


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Ceteris Paribus

Literally, a Latin phrase meaning "with other things the same." In economic and financial models, ceteris paribus is a shorthand indicating that the model holds true if other market forces do not intervene. One often finds "ceteris paribus" in simple models and in simplifications of complex models. For example, one might say: "If supply decreases, price increases, ceteris paribus." The statement is true assuming constant (and substantial) demand regardless of supply, among other factors. Ceteris paribus acknowledges other facts without letting them overwhelm the point of the model.

ceteris paribus

a Latin term meaning ‘other things being equal’ that is widely used in economic analysis as an expository technique. It allows us to isolate the relationship between two variables. For example, in demand analysis, the DEMAND CURVE shows the effect of a change in the price of a product on the quantity demanded on the assumption that all of the ‘other things’ (incomes, tastes, etc.) influencing the demand for that product remain unchanged.
References in periodicals archive ?
H6: The Indian consumers, ceteris paribus, are likely to perceive no difference in the multimedia features of Mydala, Snapdeal, and Dealsandyou websites.
The predicted change in proportion of votes to BN from an increase in the number of Indian voters, ceteris paribus, is negative for all areas of constituencies in Figure 2.
When the rental premium equals zero, the abandonment option is worthless, ceteris paribus.
H3: Incumbent presidential approval will be positively associated with ex-presidential approval, but only for former presidents of the same party as the incumbent, ceteris paribus.
An increase of one year in the term of an individual's plan, ceteris paribus, reduces the chance of conversion of resources into income by 8.
H0_2A: Ceteris paribus, los estudiantes que han obtenido una beca obtienen mejores resultados en la asignatura de Contabilidad Financiera que aquellos que no la han obtenido.
For this reason, ceteris paribus, second workers are more likely to operate informally than primary workers.
After controlling for initial conditions, including climate and membership in the Confederacy, a state that descended from a civil law legal tradition has lower economic freedom today, ceteris paribus, when compared to a state that was initially settled by a common law country.
According to that study, net domestic in-migration should be an increasing function of economic freedom, ceteris paribus, as a reflection of the desirability of greater economic freedom.
Hypothesis 2: Ceteris paribus, an increase in GDP will lead to an increase in TRADE.
CABs are presumed to be a function of the valuation of the currency--more undervaluation, ceteris paribus, leads to a higher CAB.
As long as commodities in general, but oil in particular, are seen as an asset class and continue to attract long-term investors, ceteris paribus the oil price will tend to be higher relative to fundamentals than in the past.