shadow price

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English[edit]

Noun[edit]

shadow price (plural shadow prices)

  1. (economics) A price for a resource, good, or service which is not based on actual market exchanges, but is mathematically derived from indirect data obtained from related markets.
    • 1988, David A. Starrett, Foundations in Public Economics, ISBN 9780521348010, pp. 6-7 (Google preview):
      We focus on indirect methods such as using individual choice between life-threatening versus safe jobs to infer something about the shadow price of life or using land rent differentials to infer the shadow price of air pollution.
    • 2003 August 11, Sarbjit Dhaliwal, "Punjab fights a losing battle on Johl plan," The Tribune (India) (retrieved 26 Jan 2012):
      Thus, the social cost and the shadow price of paddy is much higher than what is paid to the farmers.
    • 2007 Feb. 7, "Experts call for water pricing scheme" (transcript), Australian Broadcasting Corportation (retrieved 26 Jan 2012):
      Mike Young has been studying the shadow price of water, the amount that would be paid under normal market conditions.

Verb[edit]

shadow price

  1. (transitive, economics) To calculate a shadow price for.

References[edit]