MIT Center for Real Estate
Week 12: Real Estate and
Regional Economic Growth
• Exports, transfers, investments and the
determinants of regional growth: demand.
• Population growth and migration: supply
• 3-Q model of regional response. Factor
supply elasticity and the role of real estate.
• Wages, productivity and real estate costs –
across MSAs.
MIT Center for Real Estate
Income and Product Accounts in States
Summary of Output and Income Accounts
for Florida and Pennsylvania, 1991
Florida ($ billions) Pennsylvania ($ billions)
Income Accounts*
Income (Y) 262 242
Wages (w) 126 127
Other Income (y + G) 136 115
Consumption (C) 260 193
Private 214 161
Government 46 32
Federal Taxes (T) 38 41
Savings (S) -36 8
Output Accounts**
Output (Q) 219 211
Wages (w) 126 127
Profits and Rents (π) 93 84
Consumption (C) 260 193
Investment (I) 44 27
Imports (M) 175 153

∑
e
i
n
i
=
∑
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i
N+
∑
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i
(N
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-N) +
∑
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i
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i i i i
Share | Mix Competitive |
Shift
(i): industry
n,e: regional growth in activity, level of activity
N: national growth of activity