Arbeitspapier

Market Access and the Arrow of Time

We revisit the natural experiments of division and unification of Germany now that more time has passed and more data have become available. We show that local market access shocks are not symmetric in time. The negative shock to local market access following the division of Germany lead to a fast and strong downward adjustment of the size of West-German cities near the new border. In contrast, the positive shock of reunification did not lead to any change in their relative size, even three decades after the German reunification.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 10279

Classification
Wirtschaft
Economic Integration
Geographic Labor Mobility; Immigrant Workers
Regional and Urban History: Europe: 1913-
Size and Spatial Distributions of Regional Economic Activity
Subject
market access
iron curtain

Event
Geistige Schöpfung
(who)
Klein, Marius
Rauch, Ferdinand
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2023

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Klein, Marius
  • Rauch, Ferdinand
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2023

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