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Quantitative Finance · Glossary

What is Price level index, disposable pay after housing?

Also known as: price level index · disposable pay after housing

Definition 27.1 The Industry: Firms, Roles and Careers · Chapter 27 — Locations

A price level index is the ratio of a country’s purchasing power parity to its market exchange rate, expressed against a reference area: above 100, the same basket costs more there than in the reference. Disposable pay after housing is a package’s pay after income tax and employee social contributions, minus a year’s rent of a standard home in the city.

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