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Drifting together of falling apart? The empirics of regional economic growth in post-unification Germany

  • Michael Funke

    ()

  • Roberta Colavecchio

    ()

  • Declan Curran

The objective of this paper is to address the question of convergence across German districts in the first decade after German unification by drawing out and emphasising some stylised facts of regional per capita income dynamics. We achieve this by employing non-parametric techniques which focus on the evolution of the entire cross-sectional income distribution. In particular, we follow a distributional approach to convergence based on kernel density estimation and implement a number of tests to establish the statistical significance of our findings. This paper finds that the relative income distribution appears to be stratifying into a trimodal/bimodal distribution.

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File URL: http://www.uni-hamburg.de/fachbereiche-einrichtungen/fb03/iwwt/makro/Drifting2011.pdf
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Paper provided by Hamburg University, Department of Economics in its series Quantitative Macroeconomics Working Papers with number 21102.

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Date of creation: Feb 2011
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Handle: RePEc:ham:qmwops:21102
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  3. Michael Funke & Annekatrin Niebuhr, 2005. "Threshold Effects and Regional Economic Growth-Evidence from West Germany," Quantitative Macroeconomics Working Papers 20503, Hamburg University, Department of Economics.
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  20. Falko Juessen & Christian Bayer, 2005. "Convergence in West German Regional Unemployment Rates," ERSA conference papers ersa05p410, European Regional Science Association.
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  25. Bianchi, Marco, 1997. "Testing for Convergence: Evidence from Non-parametric Multimodality Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(4), pages 393-409, July-Aug..
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  28. Funke, Michael & Niebuhr, Annekatrin, 2001. "Threshold effects and regional economic growth - evidence from West Germany," HWWA Discussion Papers 136, Hamburg Institute of International Economics (HWWA).
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