New York Dollar

AAA

DEFINITION of 'New York Dollar'

The buying power of a U.S. dollar in the city of New York. The New York dollar is calculated by subtracting the additional cost of living in New York, and then adding back the additional income residents tend to command as a result. Once calculated, the remaining amount is a rough estimate of what your dollar is worth in this very expensive city.

INVESTOPEDIA EXPLAINS 'New York Dollar'

Living in New York is much more expensive than most other places in America. A dollar earned and spent in this city does not go as far, and once this is taken into account, you are left with the New York dollar. For example if you take $1 and subtract the additional cost of housing (15 cents), taxes (5.2 cents), basic costs (4.1 cents) and lifestyle (13.3 cents), and then add additional wages paid (16 cents), you are left with the buying power of a dollar in New York: 100 - 15 - 5.2 - 4.1 - 13.3 + 16 = 78.4 cents.

RELATED TERMS
  1. Burgernomics

    An economics term made popular by the Big Mac Index published ...
  2. Purchasing Power Parity - PPP

    An economic theory that estimates the amount of adjustment needed ...
  3. Purchasing Power

    1. The value of a currency expressed in terms of the amount of ...
  4. Relative Purchase Power Parity

    An expansion of the purchase power parity theory, which suggests ...
  5. Big Mac PPP

    A survey done by The Economist that determines what a country's ...
  6. Law Of One Price

    The theory that the price of a given security, commodity or asset ...
Related Articles
  1. Coping With Inflation Risk
    Bonds & Fixed Income

    Coping With Inflation Risk

  2. Hamburger Economics: The Big Mac Index
    Fundamental Analysis

    Hamburger Economics: The Big Mac Index

  3. What will happen to my U.S.-based stock ...
    Forex

    What will happen to my U.S.-based stock ...

  4. India Is Eclipsing China's Economy As ...
    Economics

    India Is Eclipsing China's Economy As ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center