We investigate the impact of changes in international trade and domestic transport costs on the internalgeography of a domestic economy linked to the rest of the World through a hub. We address that issue bydeveloping two three regions model, namely a version of the Footlose Entrepreneur and a...

In this paper we show that the recent model by Duranton (AER, 2007) performs remarkablywell in replicating the city size distribution of West Germany, much better than the simplerank-size rule known as Zipf´s law. The main mechanism of this theoretical framework is thechurning of industries...

The paper Investigates stability and change of regional economic activities in the longrun.As the unit of analysis we selected the machine tool industry in West Germany forthe years 1953 to 2002. We spot a strong variance in the activities between the differentregions. These differences are...

In this paper we build a quality-augmented version of an economic geography model whereconsumers have heterogenous tastes for a set of manufacturing varieties. We discuss afootloose capital model and a footloose entrepreneur model. We show that firms selling thegoods with higher values select...

We develop a model of commodity tax competition with monopolistically competitive internationallymobile firms, transport costs, and asymmetric country sizes. We investigate the impacts of noncooperativetax setting, as well as of tax harmonization and changes in the tax principle, in both...

The main argument in this paper is that new information and communication technologies (ICT) in the financial industry will increase specialisation and competition within the European financial centre system and thereby lead to a ‘re-bundling’ of functions of the various financial centres....

Wir analysieren die räumliche Verteilung verschiedener Kategorien kreativer Personen inDeutschland. Allgemein ist der Anteil der Kreativen in den Städten höher als auf dem Land.Ein etwas abweichendes Standortverhalten zeigen die freiberuflichen Künstler, für die auch ineinigen ländlichen...

While a market economy seeks equilibrium, a knowledge-based economy may upset this tendency towards stabilization by adding the feedback of globalization. The interaction among the three subdynamics of economic exchange, technological innovation, and institutional control can be captured with a...