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This paper advances the hypothesis that the EUS crisis was caused by German unification. The unification has implied a massive resource demand which parallels the US resource demand following Reagan's tax reforms in the eighties. The resource demand revised the German interest rates relative to...
Persistent link: https://www.econbiz.de/10012472989
explaining the relative East Germany-West Germany performance during the post-World War II era. We argue that previous work was … prospects of catching up with West Germany during the post-reunification era. We show, first, that the rates of technical change … account for the fact that East Germany was not the socialist showcase for which it was frequently taken before German …
Persistent link: https://www.econbiz.de/10012472735
The paper comments on the economic effects of the German unification. Apart from discussing the unification in an international perspective, analyzing the distributional consequences, and pointing to structural adjustment problems, it emphasizes the distinction between the frequently cited money...
Persistent link: https://www.econbiz.de/10012475424
This paper develops a quantitative model of internal city structure that features agglomeration and dispersion forces and an arbitrary number of heterogeneous city blocks. The model remains tractable and amenable to empirical analysis because of stochastic shocks to commuting decisions, which...
Persistent link: https://www.econbiz.de/10012458313
We develop a model of firm learning in volatile markets with noisy signals and test its predictions using historical data from the Ifo Institute's Business Climate Survey. We find that firms' forecasts improve as they age. We also exploit German Reunification as a natural experiment where firms...
Persistent link: https://www.econbiz.de/10012459454
economic mobility. Using standard measures of mobility (with panel data for the western states of Germany and the U.S.) over … the entire period 1984-2006, we find the conventional result that income mobility is greater in Germany. But when we cut … significantly over the years immediately following reunification in Germany but not in the U.S …
Persistent link: https://www.econbiz.de/10012460042
to East Germany in 1989 experience a persistent rise in their personal incomes after the fall of the Berlin Wall … within a given West German region invest in East Germany. As a result, West German regions which (for idiosyncratic reasons … capita in the early 1990s. A one standard deviation rise in the share of households with social ties to East Germany in 1989 …
Persistent link: https://www.econbiz.de/10012461472
Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise...
Persistent link: https://www.econbiz.de/10012463273
Mosel Valley in Germany in order to determine the effect that climate change is likely to have on the income of wine growers …
Persistent link: https://www.econbiz.de/10012462615
Germany was divided after World War II, many firms in the machine tool industry fled the Soviet occupied zone to prevent … expropriation. We show that the regional location decisions of these firms upon moving to western Germany were driven by non …
Persistent link: https://www.econbiz.de/10012462515