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Threshold Effects and Regional Economic Growth - Evidence from West Germany

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Author Info
Funke, Michael
Niebuhr, Annekatrin

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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 the growth of West German regions. 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. Ausgangspunkt der Analyse ist ein Modell überlappender Generationen der Humankapitalakkumulation mit Schwellenwert-Effekten. Die empirische Überprüfung des Modells basiert auf einem regionalen Datensatz für Westdeutschland. Das zentrale Ziel der Untersuchung ist es, Erkenntnisse zum Wachstum westdeutscher Regionen zu liefern. Den Ergebnisse der empirischen Analyse zufolge ist die relative Einkommensverteilung der westdeutschen Regionen durch eine Aufgliederung in drei unterschiedliche Konvergenzclubs gekennzeichnet. Die Resultate weisen darauf hin, dass das Schwellenwert- Modell zur Erklärung regionaler Wachstumsprozesse beitragen kann.

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Publisher Info
Paper provided by Hamburg Institute of International Economics in its series Discussion Paper Series with number 26141.

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Date of creation: 2001
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Handle: RePEc:ags:hiiedp:26141

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Keywords: Regional Economic Growth; Human Capital; Germany; Labor and Human Capital; J24; O40; R11; C31;

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References listed on IDEAS
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  4. Ricardo J. Caballero & Adam B. Jaffe, 1993. "How High are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth," NBER Working Papers 4370, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Roberta Colavecchio & Declan Curran & Michael Funke, 2005. "Drifting Together or Falling Apart? The Empirics of Regional Economic Growth in Post-Unification Germany," Quantitative Macroeconomics Working Papers 20509, Hamburg University, Department of Economics. [Downloadable!]
    Other versions:
  2. Straubhaar, Thomas & Suhrcke, Marc & Urban, Dieter, 2002. "Divergence - Is it Geography?," Discussion Paper Series 26350, Hamburg Institute of International Economics. [Downloadable!]
    Other versions:
  3. Koetter, Michael & Wedow, Michael, 2008. "Does regional redistribution spur growth?," Discussion Paper Series 1: Economic Studies 2008,28, Deutsche Bundesbank, Research Centre. [Downloadable!]
  4. Emiliano Giudici & André Mollick, 2008. "Convergence in the Eastern Caribbean States," The Annals of Regional Science, Springer, vol. 42(4), pages 893-909, December. [Downloadable!] (restricted)
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