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Dismantled once, diverged forever? A quasi-natural experiment of Red Army misdeeds in post-WWII Europe

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  • Christian Ochsner

Abstract

I study the economic consequences of the Red Army’s misdeeds after WWII. I exploit differences in spatial economic activity across the arbitrarily drawn and only for 74 days lasting liberation demarcation line between the Red Army and the Western Allies in South Austria. Dismantling and pillaging, but also (sexual) crimes made regions liberated by the Red Army a less desirable place to live and to start economic activities compared to adjacent regions. Spatial regression discontinuity (RD) estimates show that the liberation causes a relative population decline by around 26 to 31 percent until the present day. Measures of labor productivity also lag behind in Red Army liberated regions. I explain persistence with the selective migration pattern across the demarcation line in the direct aftermath of WWII.

Suggested Citation

  • Christian Ochsner, 2017. "Dismantled once, diverged forever? A quasi-natural experiment of Red Army misdeeds in post-WWII Europe," ifo Working Paper Series 240, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_240
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    Cited by:

    1. Clemens Fuest & Andreas Peichl & Sebastian Siegloch, 2018. "Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany," American Economic Review, American Economic Association, vol. 108(2), pages 393-418, February.
    2. Michael Wyrwich, 2018. "Migration restrictions and long-term regional development: evidence from large-scale expulsions of Germans after World War II," Jena Economic Research Papers 2018-002, Friedrich-Schiller-University Jena.
    3. repec:ces:ifodre:v:24:y:2017:i:05:p:15-23 is not listed on IDEAS
    4. repec:ces:ifodre:v:25:y:2018:i:04:p:25-27 is not listed on IDEAS
    5. repec:ces:ifodre:v:25:y:2018:i:02:p:18-25 is not listed on IDEAS

    More about this item

    Keywords

    Regional economic activity; population shock; dismantling; Red Army; Austria;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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