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The Optimal Size of German Cities An Efficiency Analysis Perspective

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  • Hitzschke, Stephan
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    Abstract

    This work investigates the interrelation between production efficiency and population size of German cities. The productive efficiency in this context is the scale efficiency, which is a result of positive and negative agglomeration externalities. The investigation is performed in a two-stage process. First, the efficiency in terms of scale efficiency is measured using nonparametric methods. The second stage investigates the relation of scale efficiency and populations size. It turns out that the optimal city size in Germany is about 220,000 inhabitants, which is almost the mean size of all German cities involved. Although there are regional differences, optimal city size remains stable as the mean size.

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    File URL: http://www.download.tu-darmstadt.de/wi/vwl/ddpie/ddpie_202.pdf
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    Bibliographic Info

    Paper provided by Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL) in its series Darmstadt Discussion Papers in Economics with number 50741.

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    Date of creation: Jun 2011
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    Publication status: Published in Darmstadt Discussion Papers in Economics . 202 (2011-06)
    Handle: RePEc:dar:ddpeco:50741

    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/50741/
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    Keywords: Efficiency analysis; optimal city size; population size; German cities;

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