How to Create a New Holiday Destination? An Evaluation of Local Public Investment for Supporting Tourism Industry
Albrecht Kauffmann, Martin T. W. Rosenfeld
Quantitative Methods in Tourism Economics,
2013
Abstract
Since the 1990s tourism has been one major area in Saxony where new local public infrastructure has been created. The question is whether this newly-built tourism infrastructure has been able to change the path of economic development in those municipalities where the investment has occurred. Is it possible to activate the tourism industry with the help of public investment at locations that are completely new to the tourism industry? The econometric estimations and a survey of businesses in the field of tourism make it clear that the new tourist infrastructure really did have a positive effect on local employment – but not everywhere and not in every case. Tourist infrastructure will only have a major positive impact on economic development if a municipality already has a “track record” of being a tourist destination and is well-equipped with the relevant complementary factors for tourist activities and the “primary features” of tourist destinations – History matters!
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Vertical Grants and Local Public Efficiency
Ivo Bischoff, Peter Bönisch, Peter Haug, Annette Illy
Abstract
This paper analyses the impact of vertical grants on local public sector efficiency. First, we develop a theoretical model in which the bureaucrat sets the tax price while voters choose the quantity of public services. In this model, grants reduce efficiency if voters do not misinterpret the amount of vertical grants the local bureaucrats receive. If voters suffer from fiscal illusion, i.e. overestimate the amount of grants, our model yields an ambiguous effect of grants on efficiency. Second, we use the model to launch a note of caution concerning the inference that can be drawn from the existing cross-sectional studies in this field: Taking into account vertical financial equalization systems that reduce differences in fiscal capacity, empirical studies based on cross-sectional data may yield a positive relationship between grants and efficiency even when the underlying causal effect is negative. Third, we perform an empirical analysis for the German state of Saxony-Anhalt, which has implemented such a fiscal equalization system. We find a positive relationship between grants and efficiency. Our analysis shows that a careful reassessment of existing empirical evidence with regard to this issue seems necessary.
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Grant Dependence, Regulation and the Effects of Formula-based Grant Systems on German Local Governments: A Data Report for Saxony-Anhalt
Peter Haug
IWH Discussion Papers,
Nr. 2,
2013
Abstract
Recent empirical studies have found – seemingly − efficiency-enhancing effects of vertical grants on local public service provision. The main purpose of this paper is to prepare an elaborate theoretical and empirical analysis of these contradictory results. Therefore, it investigates if certain fiscal and institutional conditions (fiscal stress, fiscal rank-preserving vertical grant systems, input- and output regulation), that might help to explain these empirical findings, are characteristic of at least some parts of the local government sector or certain regions. The German state of Saxony-Anhalt is chosen for case study purposes. The main results are: First, the local governments suffer from severe fiscal problems such as high grant dependency, low tax revenues and the prevalent inability to finance investments by own resources. Second, the output- and input-regulation density of certain mandatory municipal services (schools, childcare facilities, fire protection) is high. Finally, the most important vertical grant category for local governments, the formula-based grants (“Schlüsselzuweisungen”), can be described as mainly exogenous, unconditional block grants that in most cases preserve the relative fiscal position of the grant recipients.
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Municipality Size and Efficiency of Local Public Services: Does Size Matter?
Peter Bönisch, Peter Haug, Annette Illy, L. Schreier
IWH Discussion Papers,
Nr. 18,
2011
publiziert in: FinanzArchiv
Abstract
Similarly to western Germany in the 1960s and 1970s, the eastern part of Germany has experienced a still ongoing process of numerous amalgamations among counties, towns and municipalities since the mid-1990s. The evidence in the economic literature is mixed with regard to the claimed expenditure reductions and efficiency gains from municipal mergers. We therefore analyze the global efficiency of the municipalities in Saxony-Anhalt, for the first time in this context, using a double-bootstrap procedure combining DEA and truncated regression. This allows including environmental variables to control for exogenous determinants of municipal efficiency. Our focus thereby is on institutional and fiscal variables. Moreover, the scale efficiency is estimated to find out whether large units are necessary to benefit from scale economies. In contrast to previous studies, we chose the aggregate budget of municipal associations (“Verwaltungsgemeinschaften”) as the object of our analysis since important competences of the member municipalities are settled on a joint administrative level. Furthermore, we use a data set that has been carefully adjusted for bookkeeping items and transfers within the communal level. On the “eve” of a mayor municipal reform the majority of the municipalities were found to have an approximately scale-efficient size and centralized organizational forms (“Einheitsgemeinden”) showed no efficiency advantage over municipal associations.
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A Systemic View on Knowledge-based Development Metrics
Mirko Titze, Michael Schwartz, Matthias Brachert
International Journal of Knowledge-Based Development,
Nr. 1,
2012
Abstract
Drawing on the systems perspective of innovation processes, this article proposes a conceptual approach for a comprehensive analysis of regional knowledge generation and transfer. Instead of focusing on one single indicator, the approach emphasizes the importance to take multiple channels of knowledge transfer into account. This provides valuable insights into the spatial structure of innovation processes on different levels. We disentangle the innovation process and consider four different layers: i.) publications in peer-reviewed journals, ii.) patent applications, iii.) formal R&D collaboration projects, the iv.) localized input-output relations. Further, we demonstrate the relevance of the „multi-layer approach‟ by applying it empirically to a specific regional innovation system: The Free State of Saxony – a federal state in Germany. We argue that the approach could be a valuable tool to inform policy-makers about knowledge-based regional development strategies.
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Selektivität, soziale Bindung und räumliche Mobilität - Eine Analyse der Rückkehrpräferenz nach Ostdeutschland
Lutz Schneider, Alexander Kubis, D. Wiest
Zeitschrift für Wirtschaftsgeographie,
Nr. -1,
2011
Abstract
Selectivity, social ties and spatial mobility. An analysis of preferences for return migration to East Germany. In the public debate, brain drain from East Germany is supposed to be the most critical trend regarding the development and catching up of the New Länder. Therefore, potential for in- and re-migration has attracted much attention at least in the political context. Our contribution analyses the remigration potential on basis of data from a DFG research project focussing on the re-migration intentions of people formerly emigrated from Saxony-Anhalt. The analysis concentrates on the following aspects: the effect of job market success after emigration; the impact of social ties to the origin and the host region and on the selectivity of re-migration preferences. The econometric results confirm several expected effects: On the one hand an individual’s job market success reduces the intention to return. Likewise, the re-migration preference increases for people whose expectations were disappointed. On the other hand, the relevance of social ties to the origin region for re-migration dispositions is confirmed by the estimations. Yet, regarding selectivity of re-migration preferences in terms of human capital econometric results are somewhat ambiguous.
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Political Institutionalisation and Economic Specialisation in Polycentric Metropolitan Regions – The Case of the East German ‚Saxony Triangle‘
Peter Franz, Christoph Hornych
Urban Studies,
2010
Abstract
The rising focus of politicians as well as scientists in the EU on the large urban agglomerations as centres of economic growth is accompanied by political efforts to identify and to demarcate such agglomerations under the label ‘metropolitan regions’. This study develops a theoretical framework broaching the issue of cooperation between municipalities from the perspective of regional economics as well as political science. The framework is applied to the empirical case of the polycentric metropolitan region of the ‘Saxony triangle’ in east Germany. The results show that various intervening factors prevent intense co-operation between the actors in the region. Policy implications and conclusions for future research are discussed.
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The Identification of Industrial Clusters – Methodical Aspects in a Multidimensional Framework for Cluster Identification
Mirko Titze, Matthias Brachert, Alexander Kubis
Abstract
We use a combination of measures of spatial concentration, qualitative input-output analysis and innovation interaction matrices to identify the horizontal and vertical dimension of industrial clusters in Saxony in 2005. We describe the spatial allocation of the industrial clusters and show possibilities of vertical interaction of clusters based on intermediate goods flows. With the help of region and sector-specific knowledge interaction matrices we are able to show that a sole focus on intermediate goods flows limits the identification of innovative actors in industrial clusters, as knowledge flows and intermediate goods flows do not show any major overlaps.
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How to Make a City Attractive for Knowledge-Intensive Firms? – The Formation and Stagnation of Media Industry in the Old Industrial Region of Halle (Germany)
Christoph Hornych, Martin T. W. Rosenfeld
The Regeneration of Image in Old Industrial Regions: Agents of Change and Changing Agents. Mönchengladbacher Schriften zur wirtschaftswissenschaftlichen Praxis, Bd. 22,
2009
Abstract
In many regions with development problems, which had – in the past – been the domain of traditional industries, policymakers are trying today to stimulate entrepreneurial activities in knowledge-intensive and creative industries. The question is whether this strategy could really be successful. This paper reports on a case-study for the region of Halle an der Saale, which is located in the state of Saxony-Anhalt (East Germany), where the strategy of policymakers has recently been the attempt to support firms from Media Industry (“MI”).
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Political Institutionalisation and Economic Specialisation in Polycentric Metropolitan Regions – The Case of the East-German ‘Saxony Triangle’
Peter Franz, Christoph Hornych
IWH Discussion Papers,
Nr. 6,
2009
Abstract
The rising attention of politicians as well as scientists in the EU to the large urban agglomerations as centres of economic growth is accompanied by political efforts to identify and to demarcate such agglomerations under the label ‘metropolitan regions’. This study develops a theoretical framework broaching the issue of cooperation between municipalities from the perspective of regional economics as well as political science. The framework is applied to the empirical case of the polycentric metropolitan region ‘Saxony Triangle’ in East Germany. The results show that various intervening factors prevent intense cooperation between the actors in the region. Policy implications and con-
clusions for future research are discussed.
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