Does regional unemployment increase or rather decrease entrepreneurial activity? Although this question has been hotly debated among researchers for decades the answers yielded so far are ambiguous and inconclusive. The paper proposes an innovative approach that takes not only interregional...

We study the local favoritism of appointed German state ministers. Matching hand-collected data on ministers' place of residence to a sample of more than 8,000 west German municipalities during the period 1994-2013, we find that the home municipality of a state minister experiences higher...