This paper presents a regional economic model in which increasing returns to scale in the production of non-traded consumer services cause the agglomeration of high-skilled workers in one region. The residential choice of high-skilled individuals exerts a pecuniary externality on immobile...

Das Papier stellt ein 2-Regionen Modell vor, in dem das Verhalten von Lokalregierungen Bevölkerungsagglomeration verursachen kann. Ein lokales öffentliches Gut wirkt als Zentripetalkraft. Die Zentrifugalkraft ist der Wettbewerb der interregional mobilen Arbeiter um einen fixen Wohnraumbestand....

Using a market potential function, we examine the spatial correlation of wages and consumer purchasing power across regions in West Germany. The market potential function can be regarded as a reduced form of several new economic geography models. Thus, the estimation results provide some first...

Fairness considerations are important determinants of behavior in unstructured bargaining situations with equal bargaining power. If the surplus over which the bargaining takes place was created by separate, individual efforts, several entitlement-related fairness ideals might be relevant. In...

Nominaleinkommensdaten werden sowohl in politischen Debatten als auch in der ökonomischen Forschung häufig verwendet. Jedoch sollten für Wohlfahrtsvergleiche und Überprüfungen von ökonomischen Theorien reale – d.h. preisniveaubereinigte – Einkommen verwendet werden. Diese Arbeit...

International and regional integration are accompanied by the fear that the reduction of trade barriers might change the spatial distribution of economic activity radically. In the past decade, the 'New Economic Geography' has developed as a theory explaining some of the forces which might...

Cross-sectional evidence on price levels is scarce for all countries. However, several studies suggest that there might exist considerable differences in price levels within countries, which has obvious welfare implications. A sample of price levels in 50 German cities in 1993 is used to analyse...

The economic geography literature distinguishes between two types of reasons for economic agglomeration. Regional concentration of economic activity can be attributed to 'first nature' meaning geographic advantages and disadvantages given by nature or to 'second nature' meaning agglomeration...