In this paper we take a detailed look at the sectoral anatomy of regional growth in German regions over the period 1978-2008. In the aggregate, the German economy is characterized by a secular decline of the manufacturing sector and a rise of the modern service economy. This trend of structural...

Using a simple two-region model with the positive and negative effects of labor heterogeneity, we investigate the agglomeration pattern of entrepreneurs and the commuting pattern of heterogeneous workers. Labor heterogeneity is a source of productivity for e.g. high-tech industries as well as is...

The unprecedented economic rise of Eastern Europe and China in the last two decades has triggered concerns in developed Western market economies about adverse effects for domestic labor markets trough increased import competition. Simultaneously, exports from developed countries to these new...

Using a simplified NEG model, we investigates the relation between labor diversity and agglomeration. In the theoretical part, we assume the following two-region model. Homogenous consumption goods are produced using a constant returns technology with homogenous capital and heterogenous workers....

The description of geographical concentration and the search for its causes is at the focus of many studies. However, by not considering developments over an extended period of time, the majority of the studies mainly examine static relationships. This paper aims at filling this gap. We measure...