Regional price levels in the Czech Republic - preliminary results and application

Jan Cadil, Petr Mazouch, Petr Musil and Jana Kramulová

Regionální studia, 2012, vol. 2012, issue 2, 52-57

Abstract: Regional price levels should play important role in any regional analysis as plenty of indicators must be used in relation to the regional price levels and reflect the purchasing power in a particular region. The common approach in contemporary regional analyses is to use regional indicators converted in PPS. Although the PPS conversion is reliable and valid at the country level it is most likely to be inappropriate for the regional (NUTS 2 and NUTS 3) levels. The main reason is that regional PPS, which analysts usually get from EUROSTAT, actually do not reflect regional prices at all. The current methodology uses the same price level based on prices in capital city for all the regions in the country. This brings a lot of problems and empirical but also theoretical bias. In this paper we show some preliminary results of regional price levels calculation in Czech NUTS 3 regions and some economic implications which calculation of regional price levels brings. We conclude that incorporation proper regional price levels leads to quite different results in economic performance of the regions. Moreover we have to remember that the Czech Republic is quite small and homogenous country and that the differences could be even bigger in larger EU countries.

Keywords: regional unemployment; regionální nezaměstnanost; regional price level; regional PPS; regional GDP; regional wages; regionální cenové hladiny; regionální PPS; regionální HDP; regionální mzdy (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.regionalni-studia.cz/images/2012-2/6_pr ... _52-57_02_2012_6.pdf (text/html)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlrst:v:2012:y:2012:i:2:id:72:p:52-57

Ordering information: This journal article can be ordered from
Vysoká škola ekonomická v Praze, Katedra regionálních studií, nám. W. Churchilla 4, 130 67 Praha 3
http://www.regionalni-studia.cz/

Access Statistics for this article

Regionální studia is currently edited by Ing. Milan Damborský, Ph.D.

More articles in Regionální studia from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().