There is still hardly any empirical evidence on how divergent broadband technologies, and, by extension, bandwidth levels, influence GDP growth, or on the extent of spatial externalities at a regional level. Our study aims to assess the economic benefits of high-speed broadband networks within...

In the context of EMU fiscal equalization schemes have been proposed as a means to stabilize regions against asymmetric shocks. A theoretical analysis shows that besides reducing the cross-sectional income variance the redistributive element of fiscal equalization causes incentive effects for...

We examine how highway accessibility influences tax policy. We exploit the stagewise expansion of the "Baltic Sea highway" in the East German state Mecklenburg-Western Pomerania as the largest contiguous highway construction project in Germany since 1945. For non-agglomeration municipalities...

We examine how highway accessibility influences local employment outcomes. We exploit the stagewise expansion of the "Baltic Sea highway", the largest contiguous highway construction project in Germany since 1945. Results from difference-indifferences estimations and an event study approach show...

We analyze the extent to which endogenous cultural amenities affect the spatial equilibrium share of high-human-capital employees. To overcome endogeneity, we draw on a quasinatural experiment in German history and exploit the exogenous spatial distribution of baroque opera houses built as a...

The literature on growth theory is rich with models attempting to explain growth differences among countries. Several variables have been proposed many of which were found to be positively related to growth. However, a major problem with these models is that the factors explaining growth are...

We demonstrate that almost one half of the observed wage gap between East and West Germany reflects differences in worker, establishment, and regional characteristics rather than differences in productivity at the establishment level. Regional price and establishment size differentials alone...

To date, only annual information on economic activity is published for the 16 German states. In this paper, we calculate quarterly regional GDP estimates for the period between 1995 to 2020, thereby improving the regional database in Germany. The new data set will regularly be updated when...

This paper investigates to what extent the different subsectors of the knowledge economy are subject to sector-specific spatial patterns of employment dynamics, and whether these patterns are conditional upon the general economic climate in a particular region. To this end, we analyze and...