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 ?
Thus, size is hypothesized, ceteris paribus, to be positively related to fund discounts.
H3: Ceteris paribus, lenders are more likely to require audited accounts to be prepared if the debt is repayable over a longer period of time.
Ceteris paribus generalizations, like Snell's law, help scientists to do this.
Sea mencionado de paso que el ceteris paribus tiene gran aplicacion en los diferentes metodos que utiliza la economia en su rol de ciencia.
H1a: The greater are the perceived penalties, the lower is the likelihood of participation in the urban informal economy, ceteris paribus.
Consequently, it is hypothesized that the higher the percentage of the population that is age 65 and older (AGE65PLUS), the greater the overall rate of voter turnout, ceteris paribus.
H2: The Indian consumers, ceteris paribus, are likely to perceive no difference in the benevolence of Mydala, Snapdeal, and Dealsandyou online group buying websites toward them.
In this respect, ceteris paribus, the demographic trend is set to weigh on share prices over the coming decades.
However, the most basic assumption of all comparisons, in economics and every other scientific discipline, is ceteris paribus, which is "all or other things being equal or held constant" in Latin.
H1: The Indian consumers, ceteris paribus, are likely to perceive no difference in the appearance of trustworthiness of Mydala, Snapdeal, and Dealsandyou websites.
07 which means that an increase in national debt by EUR 100 leads to an increase in the primary surplus in the following year by about EUR 7 ceteris paribus.