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The Final Frontier? Border Effects and German Regional Wages 31
Brakman, Steven; Garretsen, Harry; Schramm, Marc.
Recent studies of border effects have focused on the intra-country and inter-country comparison of trade flows. It is found that borders have a negative impact on the size of cross-border trade. In order to estimate border effects on a regional level one needs not only data on inter-country but also on intra-country trade. For many countries (regional) data on intra-country trade are simply lacking, which makes an analysis of border effects and border regions cumbersome. In this paper we take a different approach to measure the impact of borders. We estimate a market potential function for German regional wages and by analysing whether German border regions can be distinguished from the other regions in terms of their wages. We use a market potential...
Tipo: Working or Discussion Paper Palavras-chave: Economic geography; Empirical estimation; Germany; International Relations/Trade; Labor and Human Capital; R10; R12; R23.
Ano: 2002 URL: http://purl.umn.edu/26233
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New Economic Geography in Germany: Testing the Helpman-Hanson Model 31
Brakman, Steven; Garretsen, Harry; Schramm, Marc.
In this paper we find evidence that the new economic geography approach is able to describe and explain the spatial characteristics of an economy, in our case the German economy. Using German district data we estimate the structural parameters of a new economic geography model as developed by Helpman (1998) and Hanson (1998) and we find confirmation for a spatial wage structure. The advantage of the Helpman- Hanson model is that it incorporates the fact that agglomeration of economic activity increases the prices of local (non-tradable) services, like housing. This model thereby provides an intuitively appealing spreading force that allows for less extreme agglomeration patterns than predicted by the bulk of new economic geography models. Based on...
Tipo: Working or Discussion Paper Palavras-chave: Economic geography; Empirical estimation; Germany; Labor and Human Capital; Political Economy; R10; R12; R23.
Ano: 2002 URL: http://purl.umn.edu/26183
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