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Threshold effects and regional economic growth--evidence from West Germany

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  • Funke, Michael
  • Niebuhr, Annekatrin

Abstract

We study an overlapping generations model of human capital accumulation with threshold effects using regional data for West Germany. Our basic goal is to shed light on what makes German regions grow. The paper finds that the relative income distribution appears to be stratifying into a trimodal distribution. Thus, application of the threshold model to a real world case, here West Germany, shows that the model might help to explain regional growth patterns.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 22 (2005)
Issue (Month): 1 (January)
Pages: 61-80

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Handle: RePEc:eee:ecmode:v:22:y:2005:i:1:p:61-80

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Web page: http://www.elsevier.com/locate/inca/30411

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Citations

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Cited by:
  1. Roberta Colavecchio & Declan Curran & Michael Funke, 2009. "Drifting together or falling apart? The empirics of regional economic growth in post-unification Germany," Applied Economics, Taylor & Francis Journals, vol. 43(9), pages 1087-1098.
  2. Straubhaar, Thomas & Suhrcke, Marc & Urban, Dieter M., 2002. "Divergence - is it geography?," HWWA Discussion Papers 181, Hamburg Institute of International Economics (HWWA).
  3. Giuseppe Arbia & Michele Battisti & Gianfranco Di Vaio, 2009. "Institutions and geography: Empirical test of spatial growth models for European regions," Working Papers CELEG 0907, Dipartimento di Economia e Finanza, LUISS Guido Carli.
  4. Koetter, Michael & Poghosyan, Tigran, 2010. "Real estate prices and bank stability," Journal of Banking & Finance, Elsevier, vol. 34(6), pages 1129-1138, June.
  5. R. Basile & S. Usai, 2012. "Analysis of regional endogenous growth," Working Paper CRENoS 201211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. Emiliano Giudici & André Mollick, 2008. "Convergence in the Eastern Caribbean States," The Annals of Regional Science, Springer, vol. 42(4), pages 893-909, December.
  7. Hierro, Mara & Maza, Adolfo, 2009. "Structural shifts in the dynamics of the European income distribution," Economic Modelling, Elsevier, vol. 26(3), pages 733-739, May.
  8. Koetter, Michael & Wedow, Michael, 2008. "Does regional redistribution spur growth?," Discussion Paper Series 1: Economic Studies 2008,28, Deutsche Bundesbank, Research Centre.

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