Abstract.
We are interested in the county government’s role for the county seat economy. Our suggestion is this: Rather than discuss changes in county seat location at a given budget (representing a rare natural experiment), we should look at changes in county budget holding fixed county seat location (yielding a steady flow of observations). In the paper’s model changes in the county budget translate into changes in county seat employment. In the paper’s empirical test against a sample of German county seats we find it difficult to reject this.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Author information
Authors and Affiliations
Corresponding author
Additional information
Received: February 2003, Accepted: Accepted May 2004
JEL Classification:
R53, H72, R23
Kristof Dascher: I have benefitted from comments by three anonymous referees. I am also grateful for financial support from the CEPR research network on Foreign Direct Investment and the Multinational Organization, funded by the European Commission under contract number ERBFMRXCT980215.
Rights and permissions
About this article
Cite this article
Dascher, K. County capital cities, county public finance and county economic geography. Economics of Governance 5, 213–233 (2004). https://doi.org/10.1007/s10101-004-0076-8
Issue Date:
DOI: https://doi.org/10.1007/s10101-004-0076-8