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Regional prices and real incomes in the UK

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  • David Hearne

Abstract

Official figures on regional incomes in the UK are compiled on a nominal basis. This paper develops a contemporary measure of relative regional prices in the UK, which suggests that the impact on relative regional living standards is substantial. Interregional differences in real incomes are therefore considerably smaller than nominal ones. It is hoped this study will stimulate further research. Insofar as prices are systematically higher in wealthier regions, there are important policy ramifications and public policy focused on regional assistance and redistribution should take account of these.

Suggested Citation

  • David Hearne, 2021. "Regional prices and real incomes in the UK," Regional Studies, Taylor & Francis Journals, vol. 55(5), pages 951-961, May.
    • Handle: RePEc:taf:regstd:v:55:y:2021:i:5:p:951-961
    DOI: 10.1080/00343404.2020.1836340
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    Cited by:

    1. Chunyun Wang & Xiaoxi Yu & Jiang Zhao, 2022. "Identifying the Real Income Disparity in Prefecture-Level Cities in China: Measurement of Subnational Purchasing Power Parity Based on the Stochastic Approach," Sustainability, MDPI, vol. 14(16), pages 1-24, August.
    2. Josh Martin & Rebecca Riley, 2023. "Productivity measurement - Reassessing the production function from micro to macro," Working Papers 033, The Productivity Institute.

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