Simulating Wages and House Prices Using the NEG
AbstractThe paper incorporates house prices within an NEG framework leading to the spatialdistributions of wages, prices and income. The model assumes that all expenditure goes tofirms under a monopolistic competition market structure, that labour efficiency units areappropriate, and that spatial equilibrium exists. The house price model coefficients areestimated outside the NEG model, allowing an econometric analysis of the significance ofrelevant covariates. The paper illustrates the methodology by estimating wages, income andprices for small administrative areas in Great Britain, and uses the model to simulate theeffects of an exogenous employment shock.
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Bibliographic InfoPaper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0021.
Date of creation: Apr 2009
Date of revision:
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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp
new economic geography; real estate prices; spatial econometrics;
Other versions of this item:
- Fingleton, Bernard, 2009. "Simulating Wages and House Prices Using the NEG," SIRE Discussion Papers 2009-33, Scottish Institute for Research in Economics (SIRE).
- Bernard Fingleton, 2009. "Simulating wages and house prices using the NEG," LSE Research Online Documents on Economics 33209, London School of Economics and Political Science, LSE Library.
- Bernard Fingleton, 2009. "Simulating Wages and House Prices Using the NEG," Working Papers 0913, University of Strathclyde Business School, Department of Economics.
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-16 (All new papers)
- NEP-GEO-2009-08-16 (Economic Geography)
- NEP-URE-2009-08-16 (Urban & Real Estate Economics)
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- Badi H. Baltagi & Bernard Fingleton & Alain Pirotte, 2013.
"Spatial Lag Models with Nested Random Effects: An Instrumental Variable Procedure with an Application to English House Prices,"
Center for Policy Research Working Papers
161, Center for Policy Research, Maxwell School, Syracuse University.
- Baltagi, Badi H. & Fingleton, Bernard & Pirotte, Alain, 2014. "Spatial lag models with nested random effects: An instrumental variable procedure with an application to English house prices," Journal of Urban Economics, Elsevier, vol. 80(C), pages 76-86.
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