Transfers, agglomeration and German unification
This paper analyses in the framework of a 2-region economic geography model the impact of transfers on agglomeration of economic activity. Two main results can be derived: First, subsidies to the activity of firms are more efficient to avoid agglomeration than subsidies to consumers (social policy). Second, if a less developed region starts its catch up process first increasing and afterwards decreasing transfers are necessary to avoid agglomeration. Due to these results east Germany?s slowdown of convergence may be a consequence of too less transfers and especially too less firm subsidies. Furthermore, if east Germany locates still at the first stage of convergence even increasing transfers would be necessary to guarantee convergence.
|Date of creation:||2001|
|Contact details of provider:|| Postal: Neuer Jungfernstieg 21, D-20347 Hamburg|
Web page: http://www.econstor.eu/handle/10419/20
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin, Philippe, 1999.
"Public policies, regional inequalities and growth,"
Journal of Public Economics,
Elsevier, vol. 73(1), pages 85-105, July.
- Ottaviano, G.I.P., 1999.
"Ad Usum Delphini: a Primer in 'New Economic Geography',"
Economics Working Papers
eco99/28, European University Institute.
- Gianmarco I.P. Ottaviano, 2000. "Ad usum delphini: A Primer in "New Economy Geography"," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(1), pages 89-116, April.
- Richard E. Baldwin & Paul Krugman, 2002.
"Agglomeration, Integration and Tax Harmonization,"
NBER Working Papers
9290, National Bureau of Economic Research, Inc.
- Baldwin, Richard & Krugman, Paul, 2000. "Agglomeration, Integration and Tax Harmonization," CEPR Discussion Papers 2630, C.E.P.R. Discussion Papers.
- Richard Baldwin; Paul Krugman, 2001. "Agglomeration, Integration and Tax Harmonization," IHEID Working Papers 01-2001, Economics Section, The Graduate Institute of International Studies.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Fujita, Masahisa & Thisse, Jacques-Francois, 1996.
"Economics of Agglomeration,"
Journal of the Japanese and International Economies,
Elsevier, vol. 10(4), pages 339-378, December.
- Fujita,Masahisa & Thisse,Jacques-FranÃ§ois, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, December.
- Fujita,Masahisa & Thisse,Jacques-FranÃ§ois, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9780521171960, December.
- Fujita, M. & Thisse, J.-F., "undated". "Economics of agglomeration," CORE Discussion Papers RP 1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Fujita, Masahisa & Thisse, Jacques-François, 1996. "Economics of Agglomeration," CEPR Discussion Papers 1344, C.E.P.R. Discussion Papers.
- Hans-Werner Sinn, 2000.
"Germany's Economic Unification: An Assessment after Ten Years,"
NBER Working Papers
7586, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 2002. "Germany's Economic Unification: An Assessment after Ten Years," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 113-128, February.
- Sinn, Hans-Werner, 2002. "Germany’s Economic Unification: An Assessment after Ten Years," Munich Reprints in Economics 19643, University of Munich, Department of Economics.
- Hans-Werner Sinn, 2000. "Germany's Economic Unification. An Assessment after Ten Years," CESifo Working Paper Series 247, CESifo Group Munich.
When requesting a correction, please mention this item's handle: RePEc:zbw:hwwadp:26161. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.