Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173014
Authors: 
Egger, Peter H.
Köthenbürger, Marko
Loumeau, Gabriel
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6738
Abstract: 
In this paper, we study how local border reforms affect economic activity. To do so, we make use of large-scale municipal merger reforms in Germany to assess the effect of local border changes on the distribution of activity in space, an issue that has not been addressed in existing literature. To allow for a comparison of economic activity within unique geographical units over time, we use geo-coded light data as well as local land-use data. Adopting a difference-in-differences approach, we find evidence that municipalities absorbing their merger partners and hosting the new administrative center experience a significant increase in local activity, while the municipalities that are being absorbed and are losing the administrative center experience a decrease in such activity. The difference between the gains in activity from absorbing municipalities and the losses from absorbed ones appears positive. These hitherto undocumented results point to the importance of distance to the administrative center as a determinant of the spatial distribution of economic activity.
Subjects: 
border effects
centripetal forces
nightlight data
administrative center
municipal mergers
JEL: 
H70
R11
R12
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.