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. Relative Purchase Power Parity

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

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

    The theory that the price of a given security, commodity or asset ...
  5. Purchasing Power Parity - PPP

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

    1. The value of a currency expressed in terms of the amount of ...
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. Understanding World Bank Data
    Investing

    Understanding World Bank Data

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

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

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. 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 ...
Trading Center