Market access and regional disparities

Niebuhr, Annekatrin

doi:10.1007/s00168-005-0047-1

Cited by 49 publications

(39 citation statements)

References 23 publications

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“…The estimate for σ by the simple market potential approach lies in the range reported by previous studies (Hanson, 2004;Mion, 2004;Brakman et al, 2004;Kiso, 2005;Niebuhr, 2006;Pires, 2006 The estimates for σ obtained with the housing rent approach are extraordinarily high.…”

Section: Estimation Resultssupporting

confidence: 71%

“…In the literature, particularly the relevance of geographical characteristics (e.g. temperature, precipitation, seashore), composition of labour force and sectoral composition of regional economies is debated (see Brakmam et al, 2004;Kiso, 2005;Niebuhr, 2006;Rodriguez and Faina, 2007 Hence, we define spatial units used in this study functionally as travel-to-work regions. Using commuter flows across German districts, Eckey (2001) has identified 180 labour market regions from a regional system of 439 districts, some of which represent centres of production and others are rural areas (see section 5).…”

Section: Econometric Issuesmentioning

confidence: 99%

“…The NEG wage equation is fundamentally nonlinear. Although it can be linearised (Mion, 2004), nonlinear least-squares (NLS) estimation is preferred in empirical research (Brakman et al, 2004;De Bruyne, 2003;Hanson, 2005;Niebuhr, 2006;Roos, 2001). Ranges for reasonable starting values are suggested by previous studies.…”

Section: Econometric Issuesmentioning

confidence: 99%

“…In all specifications the endogeneity problem is present due to the fact that wages w r and income Y r are simultaneously determined. In order to account for a possible endogeneity bias, the method of nonlinear instrument variables (NIV) (Mion, 2004;Niebuhr, 2006) or the method of generalised moments (GMM) (Hanson, 2005;Kiso, 2005) could be applied. Both methods aim at eliminating the correlation of income and/or wages with the disturbance term.…”

Section: Econometric Issuesmentioning

confidence: 99%

“…In estimating NEG models, spatial error dependence is only accounted for in exceptional cases (e.g. Mion, 2006;Niebuhr, 2006).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Market access, regional price level and wage disparities: the German case

Kosfeld

Eckey

2010

Jahrb Reg wiss

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract. In this paper we use the NEG framework of the Helpman model to investigate the spatial distribution of wages across German labour market regions under different assumptions. As the assumptions of equal regional price level and equal real wages are strongly rejected for the German economy, standard approaches may fail to reveal the role of market access in explaining regional wage disparities. In part substantial changes occur when market potential is measured with the aid of regional price levels. With the so-called price index approach, the importance of market access in explaining regional wage differentials is clearly revealed. When controlling for heterogeneity of labour force and spatial dependence, the relationship still remains highly significant. From the price index approach, limited demand linkages of reasonable reach are inferred. Terms of use: Documents inJEL classification: R11, R12, R15

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