TY - JOUR
T1 - Regional inflation, spatial locations and the Balassa-Samuelson effect
T2 - Evidence from Japan
AU - Nagayasu, Jun
N1 - Publisher Copyright:
© 2016, © Urban Studies Journal Limited 2016.
PY - 2017/5/1
Y1 - 2017/5/1
N2 - We empirically analyse regional inflation using data from Japan where there is no regulation to impede the free movement of labour, capital, goods and services across regions. In particular, our analysis will focus on the geographical location of regions and the productivity (known as the Balassa-Samuelson (BS)) effect as explanations for the dynamics of regional inflation. Based on a spatial model which is consistent with the theoretical specification of the BS, we have confirmed that, while it is a relatively small country in terms of land area, both spatial location and productivity are important determinants of regional inflation.
AB - We empirically analyse regional inflation using data from Japan where there is no regulation to impede the free movement of labour, capital, goods and services across regions. In particular, our analysis will focus on the geographical location of regions and the productivity (known as the Balassa-Samuelson (BS)) effect as explanations for the dynamics of regional inflation. Based on a spatial model which is consistent with the theoretical specification of the BS, we have confirmed that, while it is a relatively small country in terms of land area, both spatial location and productivity are important determinants of regional inflation.
KW - Balassa-Samuelson effect
KW - regional inflation
KW - spatial econometric models
KW - transaction costs
UR - http://www.scopus.com/inward/record.url?scp=85016313136&partnerID=8YFLogxK
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U2 - 10.1177/0042098016629915
DO - 10.1177/0042098016629915
M3 - Article
AN - SCOPUS:85016313136
SN - 0042-0980
VL - 54
SP - 1482
EP - 1499
JO - Urban Studies
JF - Urban Studies
IS - 6
ER -