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Simulating Wages and House Prices Using the NEG

Bernard Fingleton ()

SERC Discussion Papers from Centre for Economic Performance, LSE

Abstract: The paper incorporates house prices within an NEG framework leading to the spatialdistributions of wages, prices and income. The model assumes that all expenditure goes tofirms under a monopolistic competition market structure, that labour efficiency units areappropriate, and that spatial equilibrium exists. The house price model coefficients areestimated outside the NEG model, allowing an econometric analysis of the significance ofrelevant covariates. The paper illustrates the methodology by estimating wages, income andprices for small administrative areas in Great Britain, and uses the model to simulate theeffects of an exogenous employment shock.

Keywords: new economic geography; real estate prices; spatial econometrics (search for similar items in EconPapers)
JEL-codes: C21 C31 O18 R12 R31 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-geo and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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http://cep.lse.ac.uk/pubs/download/sercdp0021.pdf (application/pdf)

Related works:
Working Paper: Simulating Wages and House Prices Using the NEG (2009) Downloads
Working Paper: Simulating wages and house prices using the NEG (2009) Downloads
Working Paper: Simulating Wages and House Prices Using the NEG* (2009) Downloads
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