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This paper exploits the division of Germany after the Second World War and the reunification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic development. In line with a standard new economic geography model, we find...
Persistent link: https://www.econbiz.de/10005666492
A central prediction of a large class of theoretical models is that industry location is not necessarily uniquely determined by fundamentals. In these models, historical accident or expectations determine which of several steady-state locations is selected. Despite the theoretical prominence of...
Persistent link: https://www.econbiz.de/10005792403
This paper develops a quantitative model of internal city structure that features agglomeration and dispersion forces … estimate agglomeration and dispersion forces, we use data on thousands of city blocks in Berlin for 1936, 1986 and 2006 and … residential externalities. We show that the model with the estimated agglomeration parameters can account both qualitatively and …
Persistent link: https://www.econbiz.de/10011083978