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The Impact of Public Employment: Evidence from Bonn
Becker, Sascha; Heblich, Stephan; Sturm, Daniel - 2018
This paper evaluates the impact of public employment on private sector activity using the relocation of the German federal government from Berlin to Bonn in the wake of the Second World War as a source of exogenous variation. To guide our empirical analysis, we develop a simple economic...
Persistent link: https://www.econbiz.de/10011794180
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Roman Transport Network Connectivity and Economic Integration
Flueckiger, Matthias - 2019
We show that the creation of the first integrated pan-European transport network during Roman times influences economic integration over two millennia. Drawing on spatially highly disaggregated data on excavated Roman ceramics, we document that interregional trade was strongly influenced by...
Persistent link: https://www.econbiz.de/10012866077
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The positive border effect of EU integration
Brakman, Steven; Garretsen, Harry; van Marrewijk, Charles; … - 2011
Distance related variables typically vary in a cross-section dimension but less so in a time dimension across cities, regions, or countries. The enlargement of the EU or the introduction of the euro, however, can be looked upon as integration shocks that are informative of the consequences of...
Persistent link: https://www.econbiz.de/10010274818
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The Empirical Relevance of the New Economic Geography: Testing for a Spatial Wage Structure in Germany
Brakman, Steven; Garretsen, Harry; Schramm, Marc - 2000
-unification Germany. We find support for a spatial wage structure for German city-district wages, and hence indirectly for the relevance … of a new economic geography model for Germany. We also find that demand linkages in Germany are strongly localised and … that the "old" border still matters to the extent that economic interactions between western and eastern Germany are still …
Persistent link: https://www.econbiz.de/10010314952
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Inefficient lock-in and subsidy competition
Borck, Rainald; Koh, Hyun-Ju; Pflüger, Michael - 2009
This paper shows that subsidy competition may be efficiency enhancing. We model a subsidy game among two asymmetric regions in a new trade model, where capital can freely move among regions, but capital rewards are repatriated. We study subsidy competition, starting from an equilibrium where the...
Persistent link: https://www.econbiz.de/10010264594
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Fiscal competition, convergence and agglomeration
Fenge, Robert; von Ehrlich, Maximilian; Wrede, Matthias - 2007
This paper analyzes the impact of fiscal competition through infrastructure in a New Economic Geography framework. It is shown that regional competition leads to convergence if the trade costs are high but induces divergence if trade cost have fallen below a certain value. Moreover, fiscal...
Persistent link: https://www.econbiz.de/10010273770
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Lumpy countries, urbanization, and trade
Brakman, Steven; van Marrewijk, Charles - 2011
Lumpiness of production factors within a country might overturn the predictions for the structure of trade by the factor-abundance (HO) model. Trade patterns, as predicted by this model, can both be magnified or reversed by uneven concentration of production factors within a country. Cities are...
Persistent link: https://www.econbiz.de/10010280631
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Trade Costs, Market Access and Economic Geography : Why the Empirical Specification of Trade Costs Matters
Bosker, Erik Maarten; Garretsen, Harry - 2021
Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs specification used. This paper shows that the specification...
Persistent link: https://www.econbiz.de/10013316892
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Sales and Markup Dispersion : Theory and Empirics
Mrazova, Monika - 2019
We derive exact conditions relating the distributions of firm productivity, sales, output, and markups to the form of demand in monopolistic competition. Applications include a new “CREMR” demand function (Constant Revenue Elasticity of Marginal Revenue): it is necessary and sufficient for...
Persistent link: https://www.econbiz.de/10012892151
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Firm Heterogeneity and the Labour Market Effects of Trade Liberalisation
Egger, Hartmut; Kreickemeier, Udo - 2021
This paper develops a model that incorporates workers' fair wage preferences into a general equilibrium framework with monopolistic competition between heterogeneous firms à la Melitz (2003). By assuming that the wage considered to be fair by workers depends on the productivity and thus the...
Persistent link: https://www.econbiz.de/10013317452