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Regional differences in price levels across the European Union and their implications for its regional policy

Petr Janský () and Dominika Kolcunová ()

The Annals of Regional Science, 2017, vol. 58, issue 3, 641-660

Abstract: Abstract Although regional price levels should be accounted for in any analysis of well-being in regions, the European Union fails to reflect them because they are not currently available for most EU member states. To fill this gap, we estimate regional price levels for all EU regions on the basis of available regional price level data from six EU countries. Once socio-economic indicators are recalculated using our estimates, substantially higher differences in living standards emerge. These results also have important implications for the European cohesion policy, with 9% of regions currently misclassified as a consequence of regional price levels not being used.

JEL-codes: R10 R58 E31 (search for similar items in EconPapers)
Date: 2017
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