Adjusting Inequalities for Regional Price Parities: Importance and Implications

13 Pages Posted: 7 Mar 2017

Date Written: March 6, 2017

Abstract

Corrections to CPS data dramatically change the geographic distribution of the top and bottom deciles of the income distribution. We correct the measure of real personal and household income with regional price indices from BEA. Uncorrected figures have poorer states overrepresented in the bottom decile, while corrected figures have much of that decile living in urban areas in NY and CA. We draw policy-relevant conclusions from these facts, mostly with regard to housing policy.

Keywords: Regional price parities, inequality, spatial distribution

JEL Classification: R50, R53

Suggested Citation

Geloso, Vincent and Msaid, Youcef, Adjusting Inequalities for Regional Price Parities: Importance and Implications (March 6, 2017). Available at SSRN: https://ssrn.com/abstract=2928422 or http://dx.doi.org/10.2139/ssrn.2928422

Vincent Geloso (Contact Author)

Bates College ( email )

Department of Economics
Lewiston, ME
United States

Youcef Msaid

Independent ( email )

No Address Available

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