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Infrastructure, Institutions and Identity – Determinants of Regional Development Empirical Evidence from Germany

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A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Gäbler, Stefanie Research Report Infrastructure, institutions and identity - Determinants of regional development: Empirical evidence from Germany ifo Beiträge zur Wirtschaftsforschung, No. 91 Provided in Cooperation with: Ifo Institute – Leibniz Institute for Economic Research at the University of Munich Suggested Citation: Gäbler, Stefanie (2020) : Infrastructure, institutions and identity - Determinants of regional development: Empirical evidence from Germany, ifo Beiträge zur Wirtschaftsforschung, No. 91, ISBN 978-3-95942-088-4, ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität München, München This Version is available at: http://hdl.handle.net/10419/231646 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu 91 2020 Infrastructure, Institutions and Identity – Determinants of Regional Development Empirical Evidence from Germany Stefanie Gäbler 91 91 2020 2020 Infrastructure, Institutions Infrastructure, Institutions and Identity – Determinants and Identity – Determinants of Regional Development of Regional Development Empirical Evidence from Germany Empirical Evidence from Germany Stefanie Gäbler Stefanie Gäbler Herausgeber der Reihe: Clemens Fuest Herausgeber der Reihe: Clemens Fuest Schriftleitung: Chang Woon Nam Schriftleitung: Chang Woon Nam Bibliografische Information der Deutschen Nationalbibliothek Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.d-nb.de abrufbar. ISBN: 978-3-95942-088-4 Alle Rechte, insbesondere das der Übersetzung in fremde Sprachen, vorbehalten. Ohne ausdrückliche Genehmigung des Verlags ist es auch nicht gestattet, dieses Buch oder Teile daraus auf photomechanischem Wege (Photokopie, Mikrokopie) oder auf andere Art zu vervielfältigen. c ifo Institut, München 2020 Druck: ifo Institut, München ifo Institut im Internet: http://www.cesifo-group.de Preface Stefanie Gäbler prepared this study while she was working at the ifo Center for Public Finance and Political Economy. The study was completed in March 2020 and accepted as doctoral thesis by the Department of Economics at the University of Munich. It consists of six distinct empirical essays investigating various aspects of regional development using data from Germany. Chapters 2 and 3 investigate the impact of transport infrastructure in the form of an regional airport and highway expansion. Chapters 4 and 5 examine institutions at the local level, namely local public accounting standards and local election systems. Chapter 6 deals with the topic of regional identity. The chapters employ dierence-in-dierences, event study and synthetic control estimations to answer the respective research questions. Keywords: Airports, tourism, regional development, transportation infrastructure, highway, accessibility, tax factors, municipalities, local government, fiscal rules, public accounting, budget transparency, sustainability, govern- ment eiciency, accountability, direct elections, constitutions, govern- ment form, economic performances, public services, common identity, regional identity, formation of identity, voter turnout, Germany, GDR, reunification, synthetic control method, dierences-in-dierences, event studies JEL-No: D02, D72, D73, H40, H54, H70, H71, H75, H83, L93, O18, R50, Z19, Z38 I Acknowledgement I am very grateful for the support I received during the past years while preparing this disser- tation. I would like to thank my supervisor Niklas Potrafke for his support. I benefited from his expertise and feedback on my research projects. I also thank Niklas Potrafke for giving me the opportunity to visit summer schools and various conference during my PhD where I could experience invaluable exchange with fellow researches. Furthermore, I would like to thank Marcel Thum for co-supervising my thesis and the great collaboration. Many thanks to Andreas Haufler for joining my committee. I am deeply indebted to Felix Rösel for being my mentor, friend and much valued coauthor. I could rely on his constant advice and guidance throughout the last years. He has supported me beyond our joint research projects with feedback and constructive suggestions. His encouragement and helpful comments were always a source of inspiration for me. I thank my colleagues at the ifo Center for Public Finances and Political Economy, Luisa Dörr, Manuela Krause, Björn Kauder, Florian Dorn, Martin Mosler, Klaus Gründler, Fabian Ruthardt and Johannes Blum, for a pleasant working atmosphere, wonderful company, and productive talks. I am particularly grateful to Luisa and Manuela for our daily morning coee breaks, their extensive moral encouragement and their friendship. Luisa contributed significantly to the completion of my dissertation as my coauthor, but most of all as the best oice neighbor I can imagine. Interns, research assistants, the administrative sta at the ifo Institute and colleagues from other ifo centers also provided me with helpful support during the entire time. Among many others, I am especially grateful to Kristin Fischer, Florian Neumeier and Robert Lehmann. I thank my amazing friends, especially Anna Stenger, Julia Rose, Lea Immel, Elisabeth Grewenig, Alexander Schwemmer, and Leonie Boese for their encouragement and distraction. Without them the past years in Munich would not have been the same. I owe a great deal to my mother, Katja Gäbler, who always believed in me. I am more than thankful for her unconditional love and support throughout my life. Although he will never be able to read these words, I like to express deepest gratitude to my father Christian Gäbler. I miss him every day. Stefanie Gäbler March 2020 III Infrastructure, Institutions and Identity – Determinants of Regional Development Empirical Evidence from Germany Inaugural-Dissertation Zur Erlangung des Grades Doctor oeconomiae publicae (Dr. oec. publ.) eingereicht an der Ludwig-Maximilians-Universität München 2020 vorgelegt von Stefanie Gäbler Referent: Prof. Dr. Niklas Potrafke Korreferent: Prof. Dr. Marcel Thum Promotionsabschlussberatung: 22.07.2020 Datum der mündlichen Prüfung: 06.07.2020 Namen der Berichterstatter: Prof. Dr. Niklas Potrafke Prof. Dr. Marcel Thum Prof. Dr. Andreas Haufler VI Contents Preface I Acknowledgement III List of Figures XI List of Tables XIII 1 Introduction 1 1.1 Importance of regional development . 1 1.2 Measures of regional development . 3 1.3 Regional layers . 5 1.4 Chapter overview . 5 2 How new airport infrastructure promotes tourism: Evidence from a synthetic control approach in German regions 11 2.1 Introduction . 12 2.2 Background: History, geography, airlines and passengers . 13 2.3 Empirical strategy and data . 15 2.3.1 Estimation strategy . 15 2.3.2 Data . 18 2.4 Results . 18 2.4.1 Baseline . 18 2.4.2 Robustness . 21 2.5 Eects on overall economic development . 24 2.6 Conclusion . 26 Appendix . 27 3 Does highway access influence local tax factors? Evidence from German mu- nicipalities 41 3.1 Introduction . 42 3.2 Theoretical considerations and hypothesis . 43 3.3 Institutional background . 44 3.3.1 The federal system of Germany . 44 3.3.2 Highway expansion in Mecklenburg-Western Pomerania . 45 3.4 Empirical analysis . 46 3.4.1 Data and sample . 46 3.4.2 Identification and regression specifications . 49 VII Contents 3.5 Results . 52 3.5.1 Dierence-in-dierences . 52 3.5.2 Event studies . 57 3.5.3 Mechanisms . 59 3.6 Discussion . 61 3.7 Conclusion . 63 Appendix . 67 4 Ineective fiscal rules? The eect of public sector accounting standards on budgets, eiciency, and accountability 73 4.1 Introduction . 74 4.2 Public sector accounting standards . 77 4.2.1 Key features of cash-based and accrual accounting . 77 4.2.2 Pros and cons of public sector accrual accounting . 79 4.3 Institutional background . 82 4.4 Methods . 84 4.4.1 Data . 84 4.4.2 Empirical strategy . 87 4.5 Results . 91 4.5.1 Baseline . 91 4.5.2 Event studies . 94 4.5.3 Robustness . 97 4.6 Discussion . 98 4.7 Conclusion . 100 Appendix . 101 5 Do direct elections matter? Quasi-experimental evidence from Germany 119 5.1 Introduction . 120 5.2 Theoretical considerations . 122 5.3 Background . 124 5.3.1 Institutions . 124 5.3.2 Hypotheses . 127 5.4 Empirical analysis . 128 5.4.1 Identification . 128 5.4.2 Data . 131 5.4.3 Regression specifications . 132 5.5 Results . 134 5.5.1 Dierence-in-dierences . 134 5.5.2 Event
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