Using a market potential function, we examine the spatial correlation of wages and consumer purchasing power across regions in West Germany. The market potential function can be regarded as a reduced form of several new economic geography models. Thus, the estimation results provide some first...

This paper presents a regional economic model in which increasing returns to scale in the production of non-traded consumer services cause the agglomeration of high-skilled workers in one region. The residential choice of high-skilled individuals exerts a pecuniary externality on immobile...

Das Papier stellt ein 2-Regionen Modell vor, in dem das Verhalten von Lokalregierungen Bevölkerungsagglomeration verursachen kann. Ein lokales öffentliches Gut wirkt als Zentripetalkraft. Die Zentrifugalkraft ist der Wettbewerb der interregional mobilen Arbeiter um einen fixen Wohnraumbestand....