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Kosfeld, R., Eckey, H., Lauridsen, J. Disparities in Prices and Income across German NUTS 3 Regions. Applied Economics Quarterly, 54(2), 123-141.
Kosfeld, Reinhold; Eckey, Hans-Friedrich and Lauridsen, Jorgen "Disparities in Prices and Income across German NUTS 3 Regions" Applied Economics Quarterly 54.2, , 123-141.
Kosfeld, Reinhold/Eckey, Hans-Friedrich/Lauridsen, Jorgen: Disparities in Prices and Income across German NUTS 3 Regions, in: Applied Economics Quarterly, vol. 54, iss. 2, 123-141, [online]


Disparities in Prices and Income across German NUTS 3 Regions

Kosfeld, Reinhold | Eckey, Hans-Friedrich | Lauridsen, Jorgen

Applied Economics Quarterly, Vol. 54 (2008), Iss. 2 : pp. 123–141

13 Citations (CrossRef)

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Author Details

1University of Kassel, Institute of Economics, D-34109 Kassel.

2University of Kassel, Institute of Economics, D-34109 Kassel.

3University of Southern Denmark, Institute of Public Health, Campusvej 55, DK-5230 Odense M.

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In EU countries, knowledge on spatial disparities in overall price level is extremely scarce. When interregional price disparities are large, however, nominal income measures fail to assess prosperity and the catch-up processes of regions. Despite its importance for regional policy, no official regional price statistic is available as a standard. On account of this gap, this paper deals with the econometric estimation of regional price indices for German NUTS 3 regions. Econometric price models for the consumer price index (CPI) and the housing rent index (HRI) are developed on the ground of utility maximization in a two-goods model. The estimated price indices are used to analyse price disparities in the period 1995–2004 across German NUTS 3 regions. Real income comparisons show that the East /West gap is likely to be substantially larger than assessed from incomplete price data in previous studies.