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American Economic Review: Vol. 98 No. 5 (December 2008)
AER Volume. 98, Issue 5 | 
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AER Forthcoming Articles
The Costs of Remoteness: Evidence from German Division and Reunification
Article Citation
Redding, Stephen J., and
Daniel M. Sturm. 2008. "The Costs of Remoteness: Evidence from German Division and Reunification."
American Economic Review,
98(5): 1766-97.
DOI: 10.1257/aer.98.5.1766
DOI: 10.1257/aer.98.5.1766
Abstract
This paper exploits the division of Germany after the Second World War and
the reunification of East and West Germany in 1990 as a natural experiment
to provide evidence for the importance of market access for economic development.
In line with a standard new economic geography model, we find that,
following division, cities in West Germany close to the East-West German border
experienced a substantial decline in population growth relative to other
West German cities. We show that the model can account for the quantitative
magnitude of our findings and provide additional evidence against alternative
possible explanations. (JEL F15, N94, R12, R23)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (1.14 MB) | Link to Appendix (139.39 KB)
Authors
Redding, Stephen J. (London School of Economics)
Sturm, Daniel M. (London School of Economics)
Sturm, Daniel M. (London School of Economics)
JEL Classifications
N94: Regional and Urban History: Europe: 1913-
R12: Size and Spatial Distributions of Regional Economic Activity
R23: Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
R12: Size and Spatial Distributions of Regional Economic Activity
R23: Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
