Difference between revisions of "Ceteris paribus"

From ACT Wiki
Jump to: navigation, search
(CSV import)
 
(Link with financial modelling.)
Line 2: Line 2:
  
 
For example, looking at the relationship between demand and price, we assume for analysis purposes that all other variables are held constant.
 
For example, looking at the relationship between demand and price, we assume for analysis purposes that all other variables are held constant.
 +
 +
 +
Making the ''ceteris paribus'' assumption in error is one of the most common sources of error in forecasting and financial models.
  
 
== See also ==
 
== See also ==
 
* [[Demand]]
 
* [[Demand]]
+
* [[Financial model]]
 
+

Revision as of 21:40, 13 December 2014

An assumption in economic analysis that other variables remain unchanged.

For example, looking at the relationship between demand and price, we assume for analysis purposes that all other variables are held constant.


Making the ceteris paribus assumption in error is one of the most common sources of error in forecasting and financial models.

See also