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

  • H Garretsen
  • M. Schramm
  • S. Brakman

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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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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  1. Edward L. Glaeser & Joseph Gyourko, 2001. "Urban Decline and Durable Housing," Harvard Institute of Economic Research Working Papers 1931, Harvard - Institute of Economic Research.
  2. Glaeser, Edward L. & Shapiro, Jesse M., 2002. "Cities and Warfare: The Impact of Terrorism on Urban Form," Journal of Urban Economics, Elsevier, vol. 51(2), pages 205-224, March.
  3. Donald R. Davis & David E. Weinstein, 2002. "Bones, bombs and break points: The geography of economic activity," Discussion Papers 0102-02, Columbia University, Department of Economics.
  4. Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from france and Japan," Boston University - Institute for Economic Development 36, Boston University, Institute for Economic Development.
  5. J.V. Henderson, 1972. "The Sizes and Types of Cities," Working Papers 75, Queen's University, Department of Economics.
  6. Keith Head & Thierry Mayer, 2004. "The Empirics of Agglomeration and Trade," Sciences Po publications info:hdl:2441/10191, Sciences Po.
  7. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-FranÁois Thisse, 2002. "Agglomeration and Trade Revisited," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(2), pages 409-436, May.
  8. Donald R. Davis & David E. Weinstein, 2008. "A Search For Multiple Equilibria In Urban Industrial Structure," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 29-65.
  9. 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.
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