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Threshold Effects and Regional Economic Growth – Evidence from West Germany

  • Michael Funke
  • Annekatrin Niebuhr

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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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-03/cesifo_wp690.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 690.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_690
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  20. Beise, Marian & Egeln, Jürgen & Gehrke, Birgit & Legler, Harald & Licht, Georg & Machate-Weiß, Veronika & Schasse, Ulrich & Steincke, Manfred, 1998. "Zur regionalen Konzentration von Innovationspotentialen in Deutschland: Studie im Auftrag des BMBF," ZEW Dokumentationen 98-09, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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