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The Spatial Distribution of Wages: Estimating the Helpman-Hanson model for Germany

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  • H Garretsen
  • M. Schramm
  • S. Brakman

Abstract

We construct a unique data set in order to analyze whether or not a large temporary shock has an impact on city growth. Following recent work by Davis and Weinstein (2002) on Japan, we take the strategic bombing of German cities during WWII as an example of such a shock, and analyze its impact on post-war German city growth. If the war shock has only a temporary impact, then there will be a tendency towards mean reversion. Our main finding is that the bombing had a significant but temporary impact on post-war city growth in Germany as a whole as well as in western Germany separately (FRG), but that this is not the case for city growth in eastern Germany (GDR).

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File URL: http://dspace.library.uu.nl/bitstream/handle/1874/275112/03-09.pdf
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Bibliographic Info

Paper provided by Utrecht School of Economics in its series Working Papers with number 03-09.

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Length: 23 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:use:tkiwps:0309

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Related research

Keywords: city-growth; mean reversion; WWII bombing of German cities;

References

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  1. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  2. Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from France and Japan," NBER Working Papers 4612, National Bureau of Economic Research, Inc.
  3. Donald R. Davis & David E. Weinstein, 2004. "A Search for Multiple Equilibria in Urban Industrial Structure," NBER Working Papers 10252, National Bureau of Economic Research, Inc.
  4. Edward L. Glaeser & Joseph Gyourko, 2001. "Urban Decline and Durable Housing," NBER Working Papers 8598, National Bureau of Economic Research, Inc.
  5. Donald R. Davis & David E. Weinstein, 2001. "Bones, Bombs and Break Points: The Geography of Economic Activity," NBER Working Papers 8517, National Bureau of Economic Research, Inc.
  6. Head, Charles Keith & Mayer, Thierry, 2003. "The Empirics of Agglomeration and Trade," CEPR Discussion Papers 3985, C.E.P.R. Discussion Papers.
  7. Vernon Henderson & Duncan Black, 1999. "Spatial Evolution of Population and Industry in the United States," American Economic Review, American Economic Association, vol. 89(2), pages 321-327, May.
  8. Edward L. Glaeser & Jesse M. Shapiro, 2001. "Cities and Warfare: The Impact of Terrorism on Urban Form," NBER Working Papers 8696, National Bureau of Economic Research, Inc.
  9. Edward L. Glaeser & Jesse M. Shapiro, 2001. "Cities and Warfare: The Impact of Terrorism on Urban Form," Harvard Institute of Economic Research Working Papers 1942, Harvard - Institute of Economic Research.
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