New Economic Geography and Regional Price Level
AbstractIn view of the lack of area-wide regional price data, Aten and Heston (2005) adopted an econometric approach in estimating regional price level from an international perspective. At a regional level, however, spatial economic theory may contribute to advancement in explaining price level determination. Recently, the market potential approach as an essential element of NEG models has been employed for explaining observed regional land prices (Brakman et al., 2004). The present paper relies on the price mechanisms of the Helpman model (Helpman, 1998) in developing spatial-econometric models for regional price level and its major components. By evaluating a south German sample, first evidence on the empirical significance of NEG-based price level models is provided.
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Bibliographic InfoPaper provided by University of Kassel, Institute of Economics in its series Discussion Papers in Economics with number 78/05.
Length: 21 pages
Date of creation: Oct 2005
Date of revision:
Regional price level; Helpman model; spatial-econometric models; ESDA;
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, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
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- Laura H. Atuesta & Dusan Paredes Araya, 2012.
"A spatial cost of living index for Colombia using a microeconomic approach and censored data,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 19(18), pages 1799-1805, December.
- Laura Atuesta & Dusan Paredes, 2011. "A Spatial cost of living index for Colombia using a microeconomic approach and censored data," Documentos de Trabajo en Economia y Ciencia Regional 14, Universidad Catolica del Norte, Chile, Department of Economics, revised May 2011.
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