Threshold effects and regional economic growth — evidence from West Germany

  title={Threshold effects and regional economic growth — evidence from West Germany},
  author={Michael Funkea and Annekatrin Niebuhrb},
  • Michael Funkea, Annekatrin Niebuhrb
  • Published 2005
We study an overlapping generations model of human capital accumulation with threshold effects using regional data for West Germany. Our basic goal is to shed light on what makes German regions grow. The paper finds that the relative income distribution appears to be stratifying into a trimodal distribution. The results of threshold estimates imply that there is no simple relationship between income growth and human capital. The process of regional growth is marked by thresholds, pointing to… CONTINUE READING
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