Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/106533 
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers No. 8593
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper analyzes the impact of the German autobahn net on the economic performance of German regions. To address endogeneity and reverse causation problems, we use historical instrument variables, i.e. a plan of the railroad net in 1890 and a plan of the autobahn net in 1937. We find a statistically and economically significant causal effect of transport infrastructure investments as measured by changes in the length of the autobahn net of West German NUTS 3 areas on regional employment and the wage bill.
Subjects: 
transport infrastructure
regional labor market performance
historical instrumental variables
reverse causation
new economic geography
JEL: 
L91
N73
N74
R11
R40
R49
Document Type: 
Working Paper

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