Is there a standard way to control for local price effects when comparing incomes across regions?

Yes this can be done using the Purchasing Power Parity (PPP) to adjust for purchasing power differential between countries.

Is there a standard way to control for local price effects when comparing incomes across regions?

Yes this can be done using the Purchasing Power Parity (PPP) to adjust for purchasing power differential between regions.

For example, BEA has data on US regions.