shadow price

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

     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.

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

     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”, in The Tribune, India, retrieved 26 January 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 Corporation (retrieved 26 Jan 2012):

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

• shadow real wage

shadow price (third-person singular simple present shadow prices, present participle shadow pricing, simple past and past participle shadow priced)

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

• “shadow price”, in OneLook Dictionary Search.