Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
970956 | Journal of Urban Economics | 2007 | 18 Pages |
Abstract
Based on the methodology of Davis and Weinstein, we look for multiple equilibria in German city growth. By taking the bombing of Germany during WWII as an example of a large, temporary shock, we analyze whether German city growth is characterized by multiple equilibria. In doing so, we allow for spatial interdependencies between cities. The main findings are twofold. First, multiple equilibria are present in German city growth. Our evidence supports a model with two stable equilibria. Second, the inclusion of geography matters. The evidence for multiple equilibria is weaker when spatial interdependencies are not taken into account.
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Economics and Econometrics
Authors
Maarten Bosker, Steven Brakman, Harry Garretsen, Marc Schramm,