In a seminal paper, Rose (2004) found that the assumed positive impact of the WTO on international trade was questionable. This finding has been scrutinized and modified in subsequent research, using different datasets, econometric methods and separating the WTO from other forms of trade...

The Berle-Means problem - information and incentive asymmetries disrupting relations between knowledgeable managers and remote investors - has remained a durable issue engaging researchers since the 1930's. However, the Berle-Means paradigm - widely-dispersed, helpless investors facing strong,...

China’s Hukou system poses severe restrictions on labor mobility. This paper assesses the possible consequences of relaxing these restrictions for China’s internal economic geography. We base our analysis on a new economic geography (NEG) model. First, we estimate the important model...

Recent studies of border effects have focused on the intra-country and inter-country comparison of trade flows. It is found that borders have a negative impact on the size of cross-border trade. In order to estimate border effects on a regional level one needs not only data on inter-country but...

In this paper we find evidence that the new economic geography approach is able to describe and explain the spatial characteristics of an economy, in our case the German economy. Using German district data we estimate the structural parameters of a new economic geography model as developed by...

The authors analyze whether and how recent theories in which equilibria are path-dependent can be used to sustain the proposition that the adverse initial conditions are relevant for the long-run outcome of the German unification process. Though these theories are rather abstract, they strongly...

This paper analyzes the effects of macroeconomic shocks in the Economic and Monetary Union (EMU) using a stylized two-country model. First, it is shown how asymmetries between countries might matter in terms of the resulting business cycle fluctuations. More specifically, country-specific shocks...

This paper uses empirical evidence on the evolution and structure of the West-German city size distribution to assess the relevance of three different theories of urban growth. The West-German case is of particular interest as Germany's urban system has been subject to some of history's largest...