Replication data for: The Persistent Effects of Place-Based Policy: Evidence from the West-German Zonenrandgebiet

Principal Investigator(s): View help for Principal Investigator(s) Maximilian v. Ehrlich; Tobias Seidel

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Project Citation:

Ehrlich, Maximilian v., and Seidel, Tobias. Replication data for: The Persistent Effects of Place-Based Policy: Evidence from the West-German Zonenrandgebiet. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114698V1

Project Description

Summary: Using a natural experiment, we show that temporary place-based subsidies generate persistent effects on economic density. The spatial regression discontinuity design controls for continuous local agglomeration externalities, so we attribute an important role to capital formation in explaining persistent spatial patterns of economic activity. This persistence is driven by higher local public investment levels, which local governments could maintain after the end of the program because of a persistently higher tax base. We also find evidence for significant local relocation of economic activity, which raises doubts that the net effect of the policy is positive. Finally, we show that transfers have capitalized in land rents such that pretreatment land owners have benefited from the program.

Scope of Project

JEL Classification:
      H71 State and Local Taxation, Subsidies, and Revenue
      H76 State and Local Government: Other Expenditure Categories
      O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
      R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
      R12 Size and Spatial Distributions of Regional Economic Activity
      R51 Finance in Urban and Rural Economies
      R58 Regional Development Planning and Policy

Geographic Coverage: Germany

Time Period(s): 1951 – 2016

Universe: All municipalities in the five states (Lander) SchleswigHolstein, Lower Saxony, North Rhine-Westphalia, Hesse, and Bavaria

Data Type(s): administrative records data; geographic information system (GIS) data; program source code

Methodology

Data Source: -German Federal Statistical Office -Statistical Offices of the five states considered -Federal Institute for Research on Building, Urban Affairs and Spatial Development - F&B real estate consulting -Bundesamt fuer Kartographie und Geodaesie -European Environmental Agencies CORINE project -Defence Meteorological Satellites Program - Operational Linescan System (DMSP-OLS)

Unit(s) of Observation: Municipalities, Districts, Grid Cells,

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Published Versions

V1 [2019-10-13]

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DDI 2.5

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