v. Ehrlich, Maximilian; Seidel, Tobias (May 2015). The Persistent Effects of Place-Based Policy: Evidence from the West-German Zonenrandgebiet (CESifo Working Papers 5373). Munich: CESifo Working Paper
|
Text
cesifo1_wp5373.pdf - Published Version Available under License BORIS Standard License. Download (4MB) | Preview |
We show that temporary place-based subsidies generate persistent effects on economic
density. As our design allows us to control for agglomeration economies, we attribute an
important role to policy-induced locational advantage (e.g. capital structures) in explaining
persistent spatial patterns of economic activity. With regard to distributional implications, we
show that subsidies have capitalized in land rents, so pre-treatment land-owners have bene-
fitted predominantly from the program. Finally, accounting for regional subsidies raises the
causal effect of market access as identified in Redding and Sturm (2008) by about 45 percent.
Item Type: |
Working Paper |
|---|---|
Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics 03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics 03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics > Public Economics 11 Centers of Competence > Center for Regional Economic Development (CRED) |
UniBE Contributor: |
v. Ehrlich, Maximilian |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
ISSN: |
2364-1428 |
Series: |
CESifo Working Papers |
Publisher: |
CESifo Working Paper |
Language: |
English |
Submitter: |
Simon Büchler |
Date Deposited: |
02 Aug 2017 15:50 |
Last Modified: |
13 Jul 2023 12:53 |
Uncontrolled Keywords: |
Place-based policy; economic geography; persistence; locational advantage; land value capitalization |
JEL Classification: |
R12, R38, H25, H54, O18 |
BORIS DOI: |
10.7892/boris.95006 |
URI: |
https://boris.unibe.ch/id/eprint/95006 |
Actions (login required)
 |
Edit item |