Ceteris paribus
Ceteris paribus (complete form: Ceteris paribus sic stantibus ) is a Latin phrase resulting in: “all things being equal in addition”. It is especially used in Economic scenes, when in an ideal model the influence of the variation of a quantity (the explanatory variable) on another (the explained variable) is examined other than any other factor.
Example: the price determines the request ceteris paribus .
By adding ceteris paribus one recognizes the possible influence of other factors (in the example, the incomes of the consumers, their number, their preferences, etc) and one excludes them from the model: all the variables other than that studied are regarded as unchanged.
The study of a reform of Economic policy ceteris paribus thus makes it possible to determine the precise influence of the reform and to be abstracted from the “natural” evolutions of the economic circle.
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