Capital flows and real estate are pro-cyclical, and real estate has a substantial weight in economies' income and wealth. In this paper, we study the role of real estate markets in the transmission of bank flow shocks to output growth across German cities. The empirical analysis relies on a new...

The literature on unemployment has mostly focused on labor market issues while the impact of capital formation is largely neglected. Job-creation is often thought to be a matter of encouraging more employment on a given capital stock. In contrast, this paper explicitly deals with the long-run...

Germany has experienced tremendous growth rates in the aftermath of World War II. Since the early 1970s, growth rates declined and settled down at a more or less constant rate of 2 percent per year, only to experience a renewed negative trend around the early 2000s. We investigate the evolution...