Simulating Wages and House Prices Using the NEG*

Bernard Fingleton ()

No 913, Working Papers from University of Strathclyde Business School, Department of Economics

Abstract: The paper incorporates house prices within an NEG framework leading to the spatial distributions of wages, prices and income. The model assumes that all expenditure goes to firms under a monopolistic competition market structure, that labour efficiency units are appropriate, and that spatial equilibrium exists. The house price model coefficients are estimated outside the NEG model, allowing an econometric analysis of the significance of relevant covariates. The paper illustrates the methodology by estimating wages, income and prices for small administrative areas in Great Britain, and uses the model to simulate the effects 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)
Pages: 29 pages
Date: 2009-05
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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Related works:
Working Paper: Simulating Wages and House Prices Using the NEG (2009)
Working Paper: Simulating Wages and House Prices Using the NEG (2009)
Working Paper: Simulating wages and house prices using the NEG (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:str:wpaper:0913

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