Looking for multiple equilibria when geography matters: German city growth and the WWII shock

Maarten Bosker, Steven Brakman, Harry Garretsen*, Marc Schramm

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

55 Citations (Scopus)

Abstract

Based on the methodology of Davis and Weinstein, we look for multiple equilibria in German city growth. Bytaking 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. (c) 2006 Elsevier Inc. All rights reserved.

Original languageEnglish
Pages (from-to)152-169
Number of pages18
JournalJournal of Urban Economics
Volume61
Issue number1
DOIs
Publication statusPublished - Jan-2007

Keywords

  • multiple equilibria
  • German city growth
  • new economic geography
  • WWII shock

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