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

Die globale Wirtschaftskrise hinterlässt ihre Spuren zunehmend auch auf den internationalen Arbeitsmärkten. Angesichts dramatischer Nachfrageeinbrüche auf den globalen Märkten für Güter und Dienstleistungen stehen Produktionskapazitäten und damit die Beschäftigung in den meisten...

We set up a model to characterize the reaction functions of governments competing for mobile capital by simultaneously setting both the business tax rate as well as the level of provision of a productive public input. Using a rich data set of local jurisdictions, we then test the predictions of...

We set up a model to characterize the reaction functions of governments competing for mobile capital by simultaneously setting both the business tax rate as well as the level of provision of a productive public input. Using a rich data set of local jurisdictions, we then test the predictions of...

Social and/or political involvement within the population is often argued to enhance public sector performance. The underlying idea is that engagement fosters political awareness and interest and increases the public?s monitoring ability. Still, although extensive voter involvement may put...

In this paper, we assess the accuracy of macroeconomic forecasts at the regional level using a unique data set at quarterly frequency. We forecast gross domestic product (GDP) for two German states (Free State of Saxony and Baden-Württemberg) and Eastern Germany. We overcome the problem of a...

This paper contributes to the ongoing debate about deriving the value of the exponent when using Flegg's location quotient (FLQ) formula which helps to simulate regional input-output tables. Using a survey-based regional input-output table, the empirical analysis provides evidence of an optimal...