Simulating Wages and House Prices Using the NEG

Bernard Fingleton

Research output: Working paperDiscussion paper

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.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-27
Number of pages29
Volume09
Publication statusPublished - Apr 2009

Fingerprint

Wages
House prices
Income
Coefficients
Monopolistic competition
Econometric analysis
Expenditure
Spatial distribution
Market structure
Spatial equilibrium
Labour efficiency
Methodology
Covariates

Keywords

  • new economic geography
  • real estate prices
  • spatial econometrics

Cite this

Fingleton, B. (2009). Simulating Wages and House Prices Using the NEG. (13 ed.) (pp. 1-27). Glasgow: University of Strathclyde.
Fingleton, Bernard. / Simulating Wages and House Prices Using the NEG. 13. ed. Glasgow : University of Strathclyde, 2009. pp. 1-27
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Fingleton, B 2009 'Simulating Wages and House Prices Using the NEG' 13 edn, University of Strathclyde, Glasgow, pp. 1-27.

Simulating Wages and House Prices Using the NEG. / Fingleton, Bernard.

13. ed. Glasgow : University of Strathclyde, 2009. p. 1-27.

Research output: Working paperDiscussion paper

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Fingleton B. Simulating Wages and House Prices Using the NEG. 13 ed. Glasgow: University of Strathclyde. 2009 Apr, p. 1-27.