Rents and Quality of Life in Eastern Germany
Dominik Weiß
IWH Discussion Papers,
No. 12,
2008
Abstract
The rent levels between East- and Westgermany differ less than one Euro on average. This difference seems very slow regarding the persistant economic disparities and high vacancy rates in East-Germany.
Based on the assumtion, that income and life quality aspects have an impact on the local rent level a set of variables is regressed on the rent of several housing quality segments in a cross-section analysis at the community-level. The regression contains demographic, economic and housing-market-related variables and a dummy variable for east germany. It incorporates hypotheses about a special supplier structure and several market interventions that are related to the transformation process from socialistic into market economic structures after the reunification in the 1990s.
The results show a significant positive coeficiant for the east german dummy in two segments of the housing stock. Further Research about the reasons for the extra charge are important, because theese findings may be responsible for the continous out migration from East Germany.
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Wirtschaftspolitische Beratung im Zeichen der Transformation: das Institut für Wirtschaftsforschung Halle
Ulrich Blum, Martin T. W. Rosenfeld
Zeitschrift für Politikberatung,
2008
Abstract
The paper analyzes the role of scientific policy advice in modern democratic societies in general and the role of the Halle Institute for Economic Research as one of the major German economic research institutes in particular. It shows that public funded institutions must be politically independent in order to turn theory and evidence based knowledge into political advice. Typical communication channels are contract research and public hearings as well as publications in economic policy journals, a frequent presence in other print media, radio, television and internet.
The Halle Institute for Economic Research focuses on macroeconomic analyses and forecasting. In addition it scrutinizes structural change and transformation processes from a regional, innovation system, competition and urban perspective.
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Suburban Municipalities on Trial – Analysing the Sustainability of Socioeconomic Structures at the Example of the Municipality Schkopau
Sabine Döhler, Alexander Kubis
Wirtschaft im Wandel,
No. 7,
2008
Abstract
This article analyses socio-economic criteria of municipalities next to large cities. In a case study, we examine the municipality Schkopau in the south of Saxony-Anhalt. We ask if the fusion of smaller communes to this “new” municipality created in 2004 was rational in terms of sustainable socio-economic structures. Hence, we use the criteria of satellite towns developed by Boustedt.
We show that the criterion of political independence is assured by law. Meanwhile, the criteria independence of culture and urban development are not completely fulfilled. Due to the high density of industrial enterprises, the municipality has high tax revenue and therefore a strong financial basis. Also, the criterion of the minimum population figure is implemented.
Based on the specific results of the satellite town criteria, we could not find definite results for the municipality Schkopau, they are rather ambivalent. This result is partly caused by the strong interactions within the functional area of the provinces Saxony, Saxony-Anhalt and Thuringia. Due to the high dynamic of the structural change, we also point out the necessity to enhance the criteria for sustainable socio-economic structures of local and regional municipalities.
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Real Options of Private House Owners in the East German Housing Market – How Demolition Subsidies Affect Investment Prospects for Private House Owners
Dominik Weiß
Wirtschaft im Wandel,
No. 6,
2008
Abstract
The subsidies of the German urban renewal program “Stadtumbau Ost” are claimed mainly by communal and cooperative housing companies. The instruments do not fit very well for private proprietors that hold a great part of the older housing stock in central locations, for example in Wilhelminian style districts. Interim evaluation reports concerning the implementation of the “Stadtumbau” program show good results for big housing blocks, but constantly high vacancy rates in the inner city quarters. It becomes obvious that the political targets have not been achieved completely so far and that market forces limit the extensive restoration of historic buildings.
The opportunities, economic incentives and the decisions of landlords and house owners will be analyzed with a real option approach. A detailed view considers the different available forms of subsidies, examining its power to affect real estate values and to initiate politically desired urban transformations. It can be shown that the current forms of subsidies fail to promote investment of private house owners because of rising value expectations. Downgrading the building zones to lower density might reduce unrealistic expectations that were identified as a hurdle to invest. As a consequence from this consideration, municipalities should implement alternative urban development concepts and adjust the subsidy policy.
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New Limits of Municipal Economic Activity: Expansion versus Reduction?
Peter Haug
Wirtschaft im Wandel,
No. 12,
2007
Abstract
On October 11th and 12th 2007, the department of urban economics of the Halle Institute for Economic Research organized a conference on local governments’ entrepreneurial activities. The main target of this second conference after the first one in 2005 was to analyze the spatial and functional boundaries of municipal economic activities. The participants came from various fields of science, local public administrations, municipal enterprises, associations and included politicians and others interested in the topic. The presentations covered a broad variety of subjects. On the first conference day, the speakers dealt with the partly controversial attitude of different disciplines such as law, economics, public business administration or sociology towards the local public economy. Other presenters focused on selected municipal services (public transportation, housing).
The second day was dedicated to the topics restrictions on municipal economic activities in Southern Europe, regional effects of municipal enterprises and employee protection in case of privatization. The conference was closed by a panel discussion with distinguished representatives from politics, science and management about the future role of municipal enterprises.
The presentations and discussions showed that the times are changing for the local public sector. In addition, the participants rejected an unrestricted extension of markets or business fields of municipal enterprises as well as the complete privatization of municipal services.
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Spillover Effects of Spatial Growth Poles - a Reconciliation of Conflicting Policy Targets?
Alexander Kubis, Mirko Titze, Joachim Ragnitz
IWH Discussion Papers,
No. 8,
2007
Abstract
Regional economic policy faces the challenge of two competing policy goals - reducing regional economic disparities vs. promoting economic growth. The allocation of public funds has to weigh these goals particularly under the restriction of scarce financial re- sources. If, however, some region turns out to be a regional growth pole with positive spillovers to its disadvantaged periphery, regional policies could be designed to recon- cile the conflicting targets. In this case, peripheral regions could indirectly participate in the economic development of their growing cores. We start our investigation by defining and identifying such growth poles among German regions on the NUTS 3 administrative level based on spatial and sectoral effects. Using cluster analysis, we determine significant characteristics for the general identification of growth poles. Patterns in the sectoral change are identified by means of the change in the employment. Finally, we analyze whether and to what extent these growth poles ex- ert spatial spillover effects on neighbouring regions and thus mitigate contradictory in- terests in regional public policy. For this purpose, we apply a Spatial-Cross-Regressive- Model (SCR-Model) including the change in the secondary sector which allows to con- sider functional economic relations on the administrative level chosen (NUTS 3).
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Das Programm „Stadtumbau Ost“ und seine wirtschaftlichen Effekte für die beteiligten Städte
Claus Michelsen, Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 6,
2007
Abstract
Political measures in the field of urban development have relevant impacts on the local and regional economy, for example on private investment, the value of real estate or the image of a city. An evaluation of national (federal) programs for the support of urban development would not be complete without considering these impacts. For the measures, which are supported by the federal program for support on “Urban Redevelopment in East Germany” (“Stadtumbau Ost”), the economic conditions of the supported cities have played, so far, only a minor role. One expression for this is that the measures for demolishing (“Rückbau”) were concentrated on quarters with prefabricated buildings. From the perspective of local and regional economic development, there have also been failures in the allocation of money for increasing the value of real estate (“Aufwertung”), as the article shows for the example of the state of Saxony.
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Wie steht es in Mecklenburg-Vorpommern um die Ballung wirtschaftlicher Aktivitäten? - Eine Untersuchung unter besonderer Berücksichtigung der Städte des Landes
Gerhard Heimpold, Martin T. W. Rosenfeld
Rostocker Beiträge zur Regional- und Strukturforschung, Heft 18,
No. 18,
2006
Abstract
Urban and regional economics put great emphasis on urban spaces and, in general, on the importance of agglomeration forces, which is of great importance for the development perspectives of structurally weak regions. This in mind, the contribution investigates the extent and the structures of economic agglomeration characteristics, using the example of the cities in the Federal State of Mecklenburg-Vorpommern. In this context, the question is raised whether the potential given there might be better used to achieve economic progress. The contribution starts with a brief theoretical overview on the importance of agglomeration forces for urban and regional development. The empirical section comprises, first, an analysis how the cities under consideration are endowed with factors being regarded as important for economic growth; second, two essential elements of agglomeration of economic activities are investigated more in-depth: spatially concentrated industries and business networks. The investigation is based on a method which was already in use within an East-Germany wide study on Economic Development Spots (project on behalf of the Federal Office for Building and Regional Planning - BBR, finished in 2004). Finally, the contribution draws implications for the economic policy at the Laender level as well as at the municipal level.
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The role of municipalities in water management - a conference report
Peter Haug, Birger Nerré
Wirtschaft im Wandel,
No. 10,
2005
Abstract
At the 7th July 2005, the IWH under the auspices of the department of urban economics hosted a conference on the perspectives of municipal business activity in the range of water supply and disposal. Primary concern of the event was to determine the future role of municipalities. The colloquium was directed towards scientists, practitioners and politicians acting in the range of water management. The contributions addressed a wide range of topics, with the following emphases: benchmarking of municipal economic activity, empirical analyses on the efficiency and the propensity to invest, the problem of spatial disparities within the supply of infrastructure, reform suggestions for the framework of rules of the German water management. The lectures were followed by a panel discussion, attended by representatives from politics, organizations and science.
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Sachsen-Anhalt als Wirtschaftsstandort: Wie erfolgreich sind das Land und seine Regionen?
Martin T. W. Rosenfeld
Geographische Rundschau,
2005
Abstract
The article examines the economic performance and the conditions for future economic development in the German Land of Saxony-Anhalt. After the integration of Saxony-Anhalt into the market economy since 1989, strong structural changes have taken place. Nevertheless, agriculture, coal mining and the chemical industry as some of the traditional sectors of the Land’s economy have remained their importance. The weak points of the economy are the low number of entrepreneurs and a low tendency for innovations in the private sector. The Magdeburg region and the Halle region have better conditions for (inter-) national competitiveness than the Altmark region and the Dessau region. But the potentials of the urban centers Magdeburg and Halle are - as compared to other East German cities - not very strong. For improving the eonomic conditions, new instruments for stimulating entrepreneurship and for strengthening the position of the two urban centers should be installed. In addition, innovation activities of private firms could be improved by new linkages between the private sector and Saxony-Anhalt’s public research units.
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