This study investigates the employment impact of investment subsidies in Germany. With 45 billion Euro for about 100,000 firms since the German reunification, these capital grants are the central element of regional policy for strengthening employment in economically weaker regions. The effects...

Recently, the number of state interventions and of firm subsidies has largely increased. However, the possible outcome of such interventions is rather am-biguous. This paper investigates the impact of firm subsidies granted by Ger-man regional policy. The long experiences made with regional...

Over the last decade or so, the debate on the planning and development of the Paris (Île-de-France) region has revolved around two little words: "Grand Paris", or Greater Paris. Despite existing political and scientific controversies surrounding the future of the capital region, three major...

Vertical externalities, changes in one level of government’s policies that affect the budget of another level of government, may lead to non-optimal government policies. These externalities are associated with tax bases that are shared or “co-occupied” by two levels of government. Here I...

This paper studies how government transfers respond to changes in local economic activity that emerge during recessions. Local labor markets that experience greater employment losses during recessions face persistent relative decreases in earnings per capita. However, these areas also experience...

We examine the effects of differences in income tax rates on commuting times within multi-state MSAs. Our theoretical model introduces a border into a model of an urban area and shows that differences in average tax rates distort commute times and interstate commutes. Empirically examining...

This study assesses the effects of urban governance structure on the spatial expansion of metropolitan areas. A more fragmented governance structure, represented by a high number of administrative units with decision power on land use per inhabitant, is expected to increase the competition...

The paper focuses on the analysis of spatial clusters of creative industries in Slovakia using micro-geographic data. The notion of spatial clustering of creative industries is deeply embedded in the literature, showing that firms in creative industries tend to cluster mostly in large cities or...

Using a panel data model, we study the effects of regional and industry-level traits on new business formation (NBF) for 164 industries across 266 Chinese prefectures between 1998 and 2007. The objective is to provide empirical estimates on effects of prefecture traits on entry rates, and in...

Wir zeigen, dass in schrumpfenden Städten die Gesamtausgaben langsamer zurückgehen als die Einwohnerzahl. Dadurch steigen die kommunalen Ausgaben je Einwohner an. In wachsenden Städten beobachten wir diesen Effekt hingegen nicht; die Gesamtausgaben wachsen im gleichen Maß wie die...