We use disaggregated data on Chilean plants, and the Chilean input-output table to examine the impact of agglomeration spillovers on total factor productivity (TFP). In common with previous studies, we find evidence of intra-industry spillovers, but no evidence of cross-industry spillovers in...

We present a dynamic two-region model with overlapping generations. There are two types of public expenditure, education and infrastructure funding, and governments decide optimally on budget size (tax rate) and its allocation across the two outlays. Productivity of government infrastructure...

In this paper we describe the development of regional specialisation and geographical concentration in Germany between 1993 and 2001. Somewhat contrary to theoretical expectations derived from the recent literature in location theory, we neither find compelling evidence for a specialisation...

In most countries, average wages tend to be higher in larger cities. In this paper, we focus on the role played by the matching of workers to firms in explaining geographical wage differences. Using rich administrative German data for 1985-2014, we show that wages in large cities are higher not...

Deutschland ist ein Land mit einer Vielzahl an prosperierenden Regionen und Wirtschaftszentren. Doch die Ausgangslage und die Perspektiven sind nicht überall positiv. Denn gleichzeitig gibt es ökonomisch schwache Städte und Landstriche mit erheblichen Entwicklungshemmnissen. Während etwa...

The study will first outline the way in which Germany's fiscal policy was driven for several decades by a paradigm that centered on deficit control and reduced state involvement in the economy. It will assess the damage wrought by this strategy - for example, underinvestment in infrastructure...