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<strong>MPN</strong> – Master Promissory Note. A common form that allows a student or parent to borrow multiple loans for multiple academic years.
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choice variable (C1)<br />An independent variable in an OBJECTIVE FUNCTION which an economic agent attempts to maximize or minimize. Also known as a decision variable or policy variable.
shadow price (DO)<br />An imputed price used where a market price does not exist. These prices are used by large firms for their internal transactions, by central planners for accounting purposes and in COST BENEFIT ANALYSIS to measure the effects of a particular investment. There are shadow rates of interest, shadow exchange rates and shadow wage rates. The purpose of such pricing is to correct distortions introduced by monopoly, taxes and unemployment. The concept has many applications in both developed and less developed countries (because they tend to overvalue their labour and undervalue their foreign exchange).<br /><em>Reference</em><br />Little, !.M.D. and Scott, M.P.G. (eds) (1976) Using Shadow Prices, London: Heinemann Educational.
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