@techreport{Kosfeld2007Disparities,
abstract = {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.},
address = {Kassel},
author = {Reinhold Kosfeld and Hans-Friedrich Eckey and J\o{}rgen Lauridsen},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C21; R13; R31; 330; Regional price level; econometric price models; price disparities; real income disparities; Regionale Preisstruktur; Regionale Disparit\"{a}t; Regionale Entwicklung; Volkseinkommen; Deutschland},
language = {eng},
number = {93},
publisher = {Univ., Fachbereich Wirtschaftswiss.},
title = {Disparities in prices and income across German NUTS 3 regions},
type = {Volkswirtschaftliche Diskussionsbeitr\"{a}ge},
url = {http://hdl.handle.net/10419/32132},
year = {2007}
}

