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Threshold Effects and Regional Economic Growth-Evidence from West Germany

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Author Info
Michael Funke ()
Annekatrin Niebuhr

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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 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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Publisher Info
Paper provided by Hamburg University, Department of Economics in its series Quantitative Macroeconomics Working Papers with number 20503.

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Date of creation: Feb 2005
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Handle: RePEc:ham:qmwops:20503

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Related research
Keywords: R&D Spillovers; Economic Growth; Germany;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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  17. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308 Elsevier. [Downloadable!] (restricted)
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  18. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Cited by:
(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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