Arbeitspapier

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.

Sprache
Englisch

Erschienen in
Series: HWWA Discussion Paper ; No. 144

Klassifikation
Wirtschaft
Size and Spatial Distributions of Regional Economic Activity
International Economic Order and Integration
Thema
economic geography
economic integration
transfers
tax policy
east Germany
Kern-Peripherie-Beziehung
Neue ökonomische Geographie
Öffentlicher Transfer
Subvention
Regionale Entwicklung
Entwicklungskonvergenz
Wirtschaftliche Anpassung
Theorie
Neue Bundesländer

Ereignis
Geistige Schöpfung
(wer)
Ross, Matthias
Ereignis
Veröffentlichung
(wer)
Hamburg Institute of International Economics (HWWA)
(wo)
Hamburg
(wann)
2001

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Ross, Matthias
  • Hamburg Institute of International Economics (HWWA)

Entstanden

  • 2001

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