shadow price

plural shadow prices

1. economicsA 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.

   Thus, the social cost and the shadow price of paddy is much higher than what is paid to the farmers.

   2003 August 11, Sarbjit Dhaliwal, “Punjab fights a losing battle on Johl plan”, in The Tribune, India, retrieved 26 Jan 2012

   3 more examples

   Friedman (1969) argued that a positive shadow price of money balances would violate the Pareto-efficiency condition that the shadow price of anything should equal its marginal cost.

   1982, Frank Hahn, Monetary and Inflation, Oxford: Basil Blackwell, page 1

   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.

   1988, David A. Starrett, Foundations in Public Economics, →ISBN, pages 6–7

   Mike Young has been studying the shadow price of water, the amount that would be paid under normal market conditions.

   2007 Feb. 7, "Experts call for water pricing scheme" (transcript), Australian Broadcasting Corporation (retrieved 26 Jan 2012)

present singular third person shadow prices · participle present shadow pricing · participle past shadow priced · past shadow priced

1. transitiveeconomicsTo calculate a shadow price for.