commuting developed in Monte et al. (2018) to address the workings of local labor markets in Germany. One key contribution …

the government incentive to impact on entry costs, and how entry subsidies can be used strategically in open economies. We … the monopoly pricing distortion. In the autarky equilibrium these subsidies trigger entry, but they eventually do not lead … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as …

that emerge when countries non-cooperatively choose entry subsidies and their levels of basic research. We also …

and households and the aggregate economy of Germany. We adopt alternative micro-foundations for agglomeration economies … Germany's labor markets, housing rents, and household travel-to-work data, to estimate the population elasticities of urban … benefits and costs. We are the first to establish elasticities for urban costs for Germany, an estimated elasticity of …

World Input Output Database (WIOD). We also explore the consequences of labor mobility across local labor markets in Germany …