We analyse the nature of German trade-FDI linkages within the EU27 based on a simultaneous equation gravity approach for imports, exports, in- and outward FDI stocks. We adopt both a Hausman-Taylor (1981) IV approach (3SLS-GMM) and rival non-IV estimation (the system extension to the Fixed...

This paper analyses the causal linkages between regional labour market variables and internal migration flows among German states between 1991-2006. We adopt a Panel VAR approach to identify the feedback effects among the variables and analyse the dynamic properties of the system through...

We analyse the effect of public Research and Development (R&D) subsidies on private sector innovativeness for a cross-section of East German firms applying different matching estimations, which are primary based on an estimate of a propensity score. To do so, we use a until now unexplored...

In the light of new theoretical and empirical work on the Permanent Income Hypothesis we tackle earlier findings for German data, which reject its validity given a large fraction of liquidity constrained consumers. Starting from a standard short run approach we do not find evidence for excess...

For spatial data with a sufficiently long time dimension, the concept of global cointegration has been recently included in the econometrics research agenda. Global cointegration arises when non-stationary time series are cointegrated both within and between spatial units. In this paper, we...

We use the synthetic control method to analyze the effect of face masks on the spread of Covid-19 in Germany. Our identification approach exploits regional variation in the point in time when face masks became compulsory. Depending on the region we analyse, we find that face masks reduced the...

This paper investigates the mutual impact channels of Germany's major regional policy instrument (GRW) on regional economic development. Different from earlier studies which have predominately focused on a partial assessment of output ef-fects, we explicitly endogenize the factor inputs of the...