• Ceteris paribus is a Latin phrase, usually meaning “ceteris paribus”.

  • In economics, it acts as a shorthand for the influence of one economic variable on another, provided that all other variables remain constant.
  • Many economists rely on ceteris paribus to describe relative trends in markets and to build and test economic models.
  • The difficulty, ceteris paribus, is to keep all other variables constant in order to isolate what drives change.
  • In fact, one can never proceed from the fact that “ceteris paribus”.