Relative Price

A Relative Price is a calculated Data Series that calculates the ratio between two other Data Series for each Collection Period for which both Data Series have a value. The numerator and denominator are each Market Prices.  Another term for Relative Price is price ratio , which gives you the price of one product expressed in relative terms to the price of another product. Terms of trade are a frequently used and analyzed Relative Price (price ratio) in KDW, which tells you the rate at which one good or service can be exchanged for another and is typically expressed as a ratio. KDW typically uses livestock to grain or daily wages to grain terms of trade, which tell you the number of KGs of grain one can purchase through the sale of a head of livestock of a day of work at the prevailing market rates.

Types of Relative Price:

  • Terms of Trade

    • The rate at which one good or service can be exchanged for another, normally in the same Market

      • When you look at the price of one good at the cost of another good.

      • I.e. Price of Goats in terms of Maize: How many Kg. of Maize (Denominator) does it costs to buy a Goat (Numerator)?

  • Real Prices

    • A nominal price divided by a relevant CPI to create a real price.

  • Cross Border Price

    • The ratio between two Price Data Series, normally for the same Product in Markets on either side of a border

Window: Add a New Relative Price

  • Numerator is the part of a fraction that is above the line and signifies the number to be divided by the denominator. For example, when calculating terms of trade (ToT), the numerator is typically the price of a head of livestock or a day of work. Select here  a data series Numerator.

  • Denominator is the part of a fraction that is below the line and that functions as the divisor of the numerator. For example, when calculating terms of trade (ToT), the denominator is typically the price of a bag of grain.   Select here a data Series Denominator.

  • Name: Enter a Name for the Relative Price. The name should help you or others to identify what the Relative Price calculates. I.e. Garissa, Kenya, cattle for Maize.

  • Common Units: To allow comparisons of prices. If you leave these fields as they are, everything would be converted into kg, litres, or individual items.

  • Currency: Choose a currency to calculate the Relative Price and the system will convert the Data Series entered into that currency.

  • Start and End Dates: Choose the dates for which you would like the Relative Price to account for the Collection Periods of the selected Data Series (optional). By default if left blank it will choose all the available Collection Periods.

  • Description: Enter a description of the Relative Price (optional)

  • Visibility: Owner, Group, Public

The FDW allows for a private area for personal Data Sets and calculated Data Series. This implies that:

  • *       * FOs can add and edit and use their data sets but cannot edit _Group_ and _Public_ data sets.

    • NTM and RMS can add and edit their own data sets as above, but can change ownership within their FO/RO and change Visibility to the Group option.

    • M&T can add and edit their data sets, can view everything and change the Visibility of a dataset to Public option.

  • Owner: If you are adding a new Data Set, your name will be appearing. If you are accessing an already existing one, you will be able to see who added it.

  • Save: You can click on save and add another to continue adding Relative Prices or save and continue editing to remain on the same Relative Price for editing. The Relative Price will be available when accessing Single Data Series under Data Analysis.

Window: Select Relative Price to change

It is from this window that you may Add a Relative Price as explained under the relevant window.

When entering this window you can search for the Relative Price you are looking for. There is a list under the Name column that will facilitate your search, or enter key words from the name to narrow your search. The Visibility column will allow you to see if you can have access to the Relative Price you are interested in. If you find you can’t access it you may ask the owner or the HO for permission.

If you click on the name of a Relative Price the system will take you to the following window.

Window: Change Relative Price

  • Numerator and Denominator will have a selection that you can change by deleting it first and adding another one instead.

  • Name: here you may edit the name if you require.

  • Units of Measure and Currency can also be changed.

  • Start and End dates: You can narrow the data you are querying the system if you enter the date range when you would like the data values to count.

  • Visibility / Owner: If you have been contacted to make a specific Relative Price available, it is from here that you can give access to others.

  • Delete:  If you want to Delete a Relative Price it will be from here that you can do so, provided you have the rights. Then click on ‘Yes I’m sure’.

  • Save: If you made any changes click on Save.

Note: To add a Relative Price to a Data Set, please access the Relative Price from Single data series and follow the instructions from there.