Brakman, Steven; Garretsen, Harry; Schramm, Marc - CESifo - 2000
In this paper we want to shed some light on the empirical relevance of the new economic geography. Using one of the … central features of the core new economic geography models, namely that wages have the tendency to fall the further one moves … of a new economic geography model for Germany. We also find that demand linkages in Germany are strongly localised and …