Live Poster Session: https://wesleyan.zoom.us/j/94911363126
Ennio Geniblazo
My name is Ennio Geniblazo, and I’m a freshman majoring in Economics with a certificate in Applied Data Science. At Wesleyan, I’m researching how LLM’s compute creativity scores through SHAP with Professor Antonio Laverghetta, leveraging a skillset of computer science and creative writing. Beyond this, I’ve self-studied basic Finance, helping a local cafĂ© in my hometown create its first P&L and business plan geared towards quick optimization. In my free time, I enjoy recreational tennis and exploring the food cart pods in my hometown of Portland, Oregon!
Background
Regional price differences across United States metropolitan areas, as measured by Regional Price Parities (RPP), present an important economic issue in cost of living. Differences in RPP reflect variation in prices for housing, goods, and utilities relative to the national average. RPPs are generally used to compare affordability across regions, but the relative contribution of each component and the factors influencing changes over time is less clearly understood. This study examines the extent to which housing, goods, and utilities explain variation in overall RPPs, then intends to supplement this research by comparing percent changes in RPPs to percent changes in other economic indicators such as income, population, and gross domestic product to see if any are associated with America’s affordability crisis.
Methods/design
The study is an observational analysis using metropolitan-level data from the Bureau of Economic Analysis. The primary variables include overall Regional Price Parity and its components, along with measures of real personal income, population, and gross domestic product. Relationships were assessed using scatterplots, linear regression, and Pearson correlation tests. Percent changes over time were calculated for each variable, and a multivariate regression model was used to estimate the association between changes in real personal income and changes in RPP while accounting for population growth.
Discussion
The findings from this study provide evidence that housing is the primary component associated with variation in overall Regional Price Parities across metropolitan areas. Goods prices show a positive but limited association, while utilities exhibit a strong but less consistent relationship. In addition, the results indicate that changes in real personal income and population are not strongly associated with changes in Regional Price Parities over time. These findings provide useful evidence for understanding the factors that contribute to regional differences in cost of living and may inform future analyses of regional economic conditions.
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