Der Einfluß von Führungsfunktionen auf das Regionaleinkommen: eine ökonometrische Analyse deutscher Regionen
We analyze the income position of German regions based on the concept of input potentials by estimating regional production functions. The concept, developed in the late 1970s, suggests that the regional production frontier depends on input capacities that can be over- or underutilized, once a benchmark, i.e. a national yardstick, is defined. In this paper, this concept is taken up and applied to united Germany. Including variables that capture headquarter and R&D effects of firms on regional income to account for the entrepreneurial competence in regions extends a recent paper. It is shown that headquarter functions play a decisive role in describing the east-west income divide. In total, 85% of the East’s average income lag is explained by three factors: technology, headquarter functions, and transport accessibility.