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Measuring External Shocks to the City Economy: An Index of Export Prices and Terms of Trade
Author(s) -
PenningtonCross Anthony
Publication year - 1997
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00709
Subject(s) - economics , price index , index (typography) , metropolitan area , panel data , ambiguity , macroeconomics , economy , monetary economics , international economics , econometrics , medicine , linguistics , philosophy , pathology , world wide web , computer science
This paper details the construction of an index of export goods prices (the Export Price Index or EPI ) for a panel of 196 metropolitan areas from 1977 to 1992. The EPI is an indicator of external demand shocks to the city economy which does not suffer from the causal ambiguity of the endogenous indicators such as income, employment or output. The creation of an index of aggregate export prices, the EPI , for the panel of areas provides both academicians and policy analysts with a new exogenous indicator that identifies demand price innovations and the terms of trade shocks to cities.