Ceteris Paribus

''' Latin phrase that translates approximately to “holding other Things constant” and is usually rendered in English as “all other things being equal”. In economics and finance, the term is used as a shorthand for indicating the effect of one economic variable on another, holding constant all other variables that may affect the second '''

''' For example, when discussing the laws of supply and demand, one could say that if demand for a given product outweighs supply, ceteris paribus, prices will rise. Here, the use of “ceteris paribus” is simply saying that as long as all other factors that could affect the outcome (such as the existence of a substitute product) remain constant, prices will increase in this situation. Contrasts with “mutatis mutandis '''

''' The concept of ceteris paribus is important in economics because, in the real world, it's usually hard to isolate all the different variables that may influence or change the outcome of what you are studying and how an individual might make a decision '''

''' Chapter 1 constrast by holding all things constant, How healthy are the people with Insurance and those without it. After revising the data the author declares that there are important differences between the insured and the uninsured. '''

''' Because there are big differences between the two groups that affect the health of the person. Like for example insured people tend to be better educated than those who do not have insurance, therefore by being more educated they also have a healthier lifestyle. '''

''' Random assignment makes the comparison ceteris paribus groups insured and uninsured by random assignment differ only in their insurance status and any consequences that follow from it Randomization is not the only way to generate such ceteris paribus comparisons but most masters believe it is the best '''