Proxy variable

By:
Updated: Aug 20, 2021

A variable used instead of the variable of interest when that variable of interest cannot be measured directly. For example, per capita GDP can be used as a proxy for the standard of living. See also latent variable.

Reference: Oxford Press Dictonary of Economics, 5th edt.



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.