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Measuring Regional Inequality by Internet Car Price Advertisements: Evidence for Germany

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  • Konstantin A. Kholodilin
  • Boriss Siliverstovs

Abstract

We suggest to use Internet car sale price advertisements for measuring economic inequality between and within German regions. Our estimates of regional income levels and Gini indices based on advertisements are highly, positively correlated with the official figures. This implies that the observed car prices can serve as a reasonably good proxy for income levels. In contrast to the traditional measures, our data can be fast and inexpensively retrieved from the web, and more importantly allow to estimate Gini indices at the NUTS2 level-something that never has been done before. Our approach to measuring regional inequality is a useful alternative source of information that could complement officially available measures.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.358566.de/dp1036.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1036.

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Length: 15 p.
Date of creation: 2010
Date of revision:
Publication status: Published in: Economics Letters 116 (2012), 3, 414-417
Handle: RePEc:diw:diwwpp:dp1036

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Related research

Keywords: Car price advertisements; economic inequality; German NUTS1 and NUTS regions; Gini index; Internet;

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References

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  1. Nikos Askitas & Klaus F. Zimmermann, 2009. "Google Econometrics and Unemployment Forecasting," Research Notes of the German Council for Social and Economic Data 41, German Council for Social and Economic Data (RatSWD).
  2. Peter Krause & Andrea Schäfer, 2005. "Verteilung von Vermögen und Einkommen in Deutschland: große Unterschiede nach Geschlecht und Alter," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 72(11), pages 199-207.
  3. Francesco D’Amuri & Juri Marcucci, 2010. "“Google it!”Forecasting the US Unemployment Rate with a Google Job Search index," Working Papers 2010.31, Fondazione Eni Enrico Mattei.
  4. Konstantin A. Kholodilin & Maximilian Podstawski & Boriss Siliverstovs, 2010. "Do Google Searches Help in Nowcasting Private Consumption? A Real-Time Evidence for the US," KOF Working papers 10-256, KOF Swiss Economic Institute, ETH Zurich.
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Cited by:
  1. David Iselin & Boriss Siliverstovs, 2013. "Using Newspapers for Tracking the Business Cycle: A comparative study for Germany and Switzerland," KOF Working papers 13-337, KOF Swiss Economic Institute, ETH Zurich.
  2. Vyacheslav Dombrovsky & Konstantin A. Kholodilin & Boriss Siliverstovs, 2011. "Using Personal Car Register for Measuring Economic Inequality in Countries with a Large Share of Shadow Economy: Evidence for Latvia," KOF Working papers 11-287, KOF Swiss Economic Institute, ETH Zurich.

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