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Disparities in Prices and Income across German NUTS 3 Regions

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Author Info
Reinhold Kosfeld
Hans-Friedrich Eckey
Jorgen Lauridsen

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Abstract

In EU countries, knowledge on spatial disparities in overall price level is extremely scarce. When interregional price disparities are large, however, nominal income measures fail to assess prosperity and the catch-up processes of regions. Despite its importance for regional policy, no official regional price statistic is available as a standard. On account of this gap, this paper deals with the econometric estimation of regional price indices for German NUTS 3 regions. Econometric price models for the consumer price index (CPI) and the housing rent index (HRI) are developed on the ground of utility maximization in a two-goods model. The estimated price indices are used to analyse price disparities in the period 1995 – 2004 across German NUTS 3 regions. Real income comparisons show that the East /West gap is likely to be substantially larger than assessed from incomplete price data in previous studies.

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Publisher Info
Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

Volume (Year): 54 (2008)
Issue (Month): 2 ()
Pages: 123-141
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Handle: RePEc:aeq:aeqaeq:v54_y2008_i2_q2_p123-141

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Related research
Keywords: Regional price level; econometric price models; price disparities; real income disparities;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R31 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Housing Supply and Markets

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2007. "Anmerkung zur Identifikation von Förderregionen in der "Gemeinschaftsaufgabe"," Discussion Papers in Economics 90/07, University of Kassel, Institute of Economics. [Downloadable!]
  2. Jochen Michaelis & Angela Birk, 2004. "Employment- and Growth Effects of Tax Reforms," Discussion Papers in Economics 58/04, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  3. Jochen Michaelis, 2005. "Optimal Monetary Policy in the Presence of Pricing-to-Market," Discussion Papers in Economics 68/05, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  4. Jochen Michaelis & Alexander Spermann, 2004. "Evaluation von Minijobs sowie Arbeitslosengeld II: Methodische Grundprobleme und Lösungsansätze," Discussion Papers in Economics 61/04, University of Kassel, Institute of Economics. [Downloadable!]
  5. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2005. "Regional Convergence in Germany. A Geographically Weighted Regression Approach," Discussion Papers in Economics 76/05, University of Kassel, Institute of Economics. [Downloadable!]
    Other versions:
  6. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2006. "Abgrenzung deutscher Arbeitsmarktregionen," Discussion Papers in Economics 81/06, University of Kassel, Institute of Economics. [Downloadable!]
  7. Martin Debus & Jochen Michaelis, 2006. "Ausbildung, Erwerbsphase, Renteneintritt - demografischer Wandel und optimale Zeitallokation im Lebenszyklus," Discussion Papers in Economics 79/06, University of Kassel, Institute of Economics. [Downloadable!]
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  8. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2005. "Regionale Entwicklung mit und ohne räumliche Spillover Effekte," Discussion Papers in Economics 70/05, University of Kassel, Institute of Economics. [Downloadable!]
  9. Bannier, Christina E., 2005. "Big elephants in small ponds: Do large traders make financial markets more aggressive?," Journal of Monetary Economics, Elsevier, vol. 52(8), pages 1517-1531, November. [Downloadable!] (restricted)
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  10. Jochen Michaelis & Melanie Arntz & Alexander Spermann, 2005. "Die Reform der Pflegeversicherung - weniger Kostendruck durch flexiblere Pflegearrangements?," Discussion Papers in Economics 71/05, University of Kassel, Institute of Economics. [Downloadable!]
  11. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2004. "Regionale Produktionsfunktionen mit Spillover-Effekten für Deutschland," Discussion Papers in Economics 64/04, University of Kassel, Institute of Economics. [Downloadable!]
  12. Jochen Michaelis & Heike Minich, 2004. "Inflationsdifferenzen im Euroraum - Eine Bestandsaufnahme," Discussion Papers in Economics 62/04, University of Kassel, Institute of Economics. [Downloadable!]
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  13. Jochen Michaelis, 2007. "Internationaler Handel," Discussion Papers in Economics 91/07, University of Kassel, Institute of Economics. [Downloadable!]
  14. Stefan Voigt & Michael Ebeling & Lorenz Blume, 2004. "Improving Credibility by Delegating Judicial Competence - the Case of the Judicial Committee of the Privy Council," Discussion Papers in Economics 67/04, University of Kassel, Institute of Economics. [Downloadable!]
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  15. Jochen Michaelis, 2005. "Zur Reform der Leistungsformen der Pflegeversicherung - ein familienökonomischer Ansatz," Discussion Papers in Economics 74/05, University of Kassel, Institute of Economics. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Christian Dreger & Reinhold Kosfeld, 2007. "Do Regional Price Levels Converge?: Paneleconometric Evidence Based on German Districts," Discussion Papers of DIW Berlin 754, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  2. Dominik Weiß, 2008. "Mietpreise und Lebensqualität: Ist das Wohnen in Ostdeutschland wirklich günstig?," IWH Discussion Papers 12-08, Halle Institute for Economic Research. [Downloadable!]
  3. Reinhold Kosfeld & Hans-Friedrich Eckey, 2008. "Market Access, Regional Price Level and Wage Disparities: The German Case," MAGKS Papers on Economics 200814, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
  4. Hans-Friedrich Eckey & Reinhold Kosfeld & Alexander Werner, 2008. "Die Lohnkurve in Deutschland unter Berücksichtigung des regionalen Preisniveaus," MAGKS Papers on Economics 200810, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
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This page was last updated on 2009-11-30.

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