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

doi:10.1016/j.jue.2006.07.001

Journal of Urban Economics

Volume 61, Issue 1, January 2007, Pages 152-169

https://doi.org/10.1016/j.jue.2006.07.001 Get rights and content

Abstract

Based on the methodology of Davis and Weinstein, we look for multiple equilibria in German city growth. By taking 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.

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

Abstract

An Introduction to Geographical Economics: Trade, Location and Growth

The strategic bombing of German cities during WWII and its impact on city growth

Journal of Economic Geography

Bones, bombs, and break points: The geography of economic activity

American Economic Review