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Urban Agglomeration and CEO Compensation
Journal of Financial and Quantitative Analysis,
We examine the relation between the agglomeration of firms around big cities and chief executive officer (CEO) compensation. We find a positive relation among the metropolitan size of a firm’s headquarters, the total and equity portion of its CEO’s pay, and the quality of CEO educational attainment. We also find that CEOs gradually increase their human capital in major metropolitan areas and are rewarded for this upon relocation to smaller cities. Taken together, the results suggest that urban agglomeration reflects local network spillovers and faster learning of skilled individuals, for which firms are willing to pay a premium and which are therefore important factors in CEO compensation.
Metropolitan Area „Central Germany“: How Strong are the Commuting Flows between the Cities?
Wirtschaft im Wandel,
The metropolitan area „Central Germany“ is an institutional agreement on co-operation between the bigger cities of the German Länder Saxonia, Saxony-Anhalt and Thuringia. It is one of now eleven “European Metropolitan Areas” acknowledged by the Conference of German Ministers for Spatial Planning. In the face of the multitude of cities and the large distances between the cities at the fringe and the geographical centre of the metropolitan area “Central Germany” should be regarded as a very special case. Another peculiarity is that the hinterland of the metropolitan area has not yet been delineated. The paper analyses the networking interrelations between the eleven cities on the basis of commuting flows. Additionally, proposals for the delimitation of this metropolitan area as a polycentric functional urban area are suggested for the first time. The investigation yields that network connectivity between the cities that have shaped the former metropolitan area “Halle/Leipzig-Saxonian Triangle”, as well as the Thuringian cities is much more intensive than the commuting flows between these subareas that are well connected from history. As a functional area, the metropolitan area “Central Germany” would have a very large hinterland, but its population density would be rather small, and it would interact only with the nearest regional centres. One can conclude that the preconditions for successful cooperation are better for adjacent cities which collaboration has already a long tradition.
What are the benefits of cooperation and networking for the economic development of cities and metropolitan regions? Conference proceeding of the third “Halle Forum on Urban Economic Growth”
Wirtschaft im Wandel,
The Department of Urban Economics of the Halle Institute for Economic Research (IWH) held on 2 and 3 December 2010 the third “Halle Forum on Urban Economic Growth“. The biennial “Halle Forum” focuses on the determinants of urban growth. This year's conference addressed the forms and benefits of cooperation and networking for the economic development of cities and metropolitan regions. The presentations and discussions focused on the one hand on the effects and determinants of inter-and intra-regional cooperation between firms, and on the other hand on cooperation between neighboring municipalities, especially through the establishment of metropolitan regions.
Possible Ways for Developing a Media City: Chances for Newcomer Cities are rather Limited!
Wirtschaft im Wandel,
Numerous cities try to set up themselves as centres of creative businesses, especially for media industry. Behind such strategies for supporting the local media economy stands the aim to profit from the high share of supra-regional sales in the media economy, from possible image effects as well as – especially in Germany – from the backflow of taxes for public broadcasting. Against this background, the article examines the efficiency of possible instruments for local decision makers to improve the location conditions for the media industry. An analysis of the location preferences of the media industry shows that localization economies as well as urbanization economies have a high importance. Economic measures to generate or strengthen these effects are the attraction of public broadcasting stations, the assignment of subsidies for local film and media producers, the endowment with science facilities and educational institutions which are relevant for media, the establishment of business incubators specialized on media industry, and the development of inter-firm networks and special city districts for the local media industry. Our analysis shows that most of these instruments have only limited impacts. In particular, cities without public broadcasting stations and without educational institutions relevant for the branch probably will not have the chance to become media cities.