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. Eyeing China? Consider These Economic ...
    Economics

    Eyeing China? Consider These Economic ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center