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Regional differences in price levels across the European Union and their implications for its regional policy

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  • Petr Janský

    (Charles University in Prague)

  • Dominika Kolcunová

    (Charles University in Prague)

Abstract

Although regional price levels should be accounted for in any analysis of well-being in regions, the European Union fails to reflect them because they are not currently available for most EU member states. To fill this gap, we estimate regional price levels for all EU regions on the basis of available regional price level data from six EU countries. Once socio-economic indicators are recalculated using our estimates, substantially higher differences in living standards emerge. These results also have important implications for the European cohesion policy, with 9% of regions currently misclassified as a consequence of regional price levels not being used.

Suggested Citation

  • Petr Janský & Dominika Kolcunová, 2017. "Regional differences in price levels across the European Union and their implications for its regional policy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 641-660, May.
    • Handle: RePEc:spr:anresc:v:58:y:2017:i:3:d:10.1007_s00168-017-0813-x
    DOI: 10.1007/s00168-017-0813-x
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    Cited by:

    1. Tomáš Želinský & Martina Mysíková & Thesia I. Garner, 2022. "Trends in Subjective Income Poverty Rates in the European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2493-2516, October.
    2. Penne, Tess & Goedemé, Tim, 2021. "Can low-income households afford a healthy diet? Insufficient income as a driver of food insecurity in Europe," Food Policy, Elsevier, vol. 99(C).
    3. Victor Forte-Campos & Enrique Moral-Benito & Javier Quintana, 2021. "A cost of living index for Spanish cities," Economic Bulletin, Banco de España, issue 3/2021.
    4. Geloso, Vincent & Msaid, Youcef, 2018. "Adjusting Inequalities for Regional Price Parities: Importance and Implications," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), February.
    5. Tess Penne & Tim Goedemé, 2019. "Putting inadequate incomes at the heart of food insecurity. A Study of the financial constraints to access a healthy diet in Europe," Working Papers 1910, Herman Deleeck Centre for Social Policy, University of Antwerp.

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    More about this item

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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