Essays on household mobility and the quality of life in Germany [Elektronische Ressource] / vorgelegt von Alexander Ebertz
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Essays on household mobility and the quality of life in Germany [Elektronische Ressource] / vorgelegt von Alexander Ebertz

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Essays onHousehold Mobility and the Quality of Life inGermanyInaugural-Dissertationzur Erlangung des GradesDoctor oeconomiae publicae (Dr. oec. publ.)an der Ludwig-Maximilians-Universit at Munc hen2009vorgelegt vonAlexander EbertzReferent: Prof. Dr. Thiess ButtnerKorreferent: Prof. Dr. Joachim WinterMundlic he Prufung: 5. Mai 2010Promotionsabschlussberatung: 19. Mai 2010Fur meine ElternAcknowledgementsFirst and foremost I would like to thank Thiess Buttner and Joachim Winter for agreeingto supervise my thesis. I am especially indebted to Thiess Buttner for his ongoing guid-ance, encouragement, and support. I greatly bene ted from our inspiring and productivecollaboration, which is re ected in his co-authorship of Chapters 1 and 3. Grateful ac-knowledgements are made to Ifo for providing me with an excellent research environmentand all necessary resources. I especially thank all my colleagues at the Department ofPublic Finance for the pleasant working atmosphere. I am grateful to my fellow doctoralstudents at Ifo and in particular to Federic Holm-Hadulla, Oliver R ohn, Thomas Strobel,and Georg Wamser for numerous fruitful discussions. Editorial help from Marco Baldini,Christian Breuer, Sabine Christ, Bj orn Milsch, and Hannes Ullrich is greatly appreciated.I would also like to thank Hannes Ullrich for insightful discussions and comments on Chap-ter 4. I am indebted to Marcel Thum and Otto Reich for helpful suggestions on Chapter2.

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Publié le 01 janvier 2010
Nombre de lectures 11
Langue English
Poids de l'ouvrage 3 Mo

Extrait

Essays on
Household Mobility and the Quality of Life in
Germany
Inaugural-Dissertation
zur Erlangung des Grades
Doctor oeconomiae publicae (Dr. oec. publ.)
an der Ludwig-Maximilians-Universit at Munc hen
2009
vorgelegt von
Alexander Ebertz
Referent: Prof. Dr. Thiess Buttner
Korreferent: Prof. Dr. Joachim Winter
Mundlic he Prufung: 5. Mai 2010
Promotionsabschlussberatung: 19. Mai 2010Fur meine ElternAcknowledgements
First and foremost I would like to thank Thiess Buttner and Joachim Winter for agreeing
to supervise my thesis. I am especially indebted to Thiess Buttner for his ongoing guid-
ance, encouragement, and support. I greatly bene ted from our inspiring and productive
collaboration, which is re ected in his co-authorship of Chapters 1 and 3. Grateful ac-
knowledgements are made to Ifo for providing me with an excellent research environment
and all necessary resources. I especially thank all my colleagues at the Department of
Public Finance for the pleasant working atmosphere. I am grateful to my fellow doctoral
students at Ifo and in particular to Federic Holm-Hadulla, Oliver R ohn, Thomas Strobel,
and Georg Wamser for numerous fruitful discussions. Editorial help from Marco Baldini,
Christian Breuer, Sabine Christ, Bj orn Milsch, and Hannes Ullrich is greatly appreciated.
I would also like to thank Hannes Ullrich for insightful discussions and comments on Chap-
ter 4. I am indebted to Marcel Thum and Otto Reich for helpful suggestions on Chapter
2. I also thank Mandy Kriese for providing me with the data for Chapter 2. Financial
support from the Ifo Institute is gratefully acknowledged. Participants at conferences and
workshops in Cape Town, Dresden, Graz, Maastricht, Magdeburg, Munc hen, Vancouver,
and Warwick made valuable comments to improve this work. All chapters pro ted from
seminar presentations at CES and Ifo. Last but certainly not least I would especially like
to thank Sabine Christ, Marco Baldini, and my parents for their support throughout the
entire time.Contents
Introduction IX
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIX
1 Quality of Life in the Regions: Results for German Counties 1
1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Theoretical Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.3 Investigation Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.4 Data and Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . 10
1.5 Regression Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.6 Implicit Prices and Quality of Life Index . . . . . . . . . . . . . . . . . . . 18
1.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
ICONTENTS II
Appendix: Datasources and De nitions . . . . . . . . . . . . . . . . . . . . 24
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2 The Capitalization of Public Services and Amenities into Land Prices {
Empirical Evidence from German Communities 39
2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.2 Theoretical Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.3 Empirical Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
2.4 Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
2.5 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
2.6 Hedonic Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
2.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3 Spatial Implications of Minimum Wages 59
3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.2 Spatial Di erences in the Incidence of Minimum Wages . . . . . . . . . . . 63CONTENTS III
3.3 The Spatial Wage Structure in Germany . . . . . . . . . . . . . . . . . . . 70
3.4 Minimum Wages in Spatial Equilibrium . . . . . . . . . . . . . . . . . . . . 76
3.4.1 A Basic Model of the Spatial Equilibrium . . . . . . . . . . . . . . 76
3.4.2 Introducing a Minimum Wage . . . . . . . . . . . . . . . . . . . . . 81
3.4.3 Welfare Implications . . . . . . . . . . . . . . . . . . . . . . . . . . 85
3.5 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
4 The Determinants of Joint Residential and Job Location Choices:
A Mixed Logit Approach 93
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
4.2 Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
4.2.1 Household Preferences . . . . . . . . . . . . . . . . . . . . . . . . . 100
4.2.2 Location Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
4.3 Empirical Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
4.3.1 Setting and Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103CONTENTS IV
4.3.2 Econometric Speci cation . . . . . . . . . . . . . . . . . . . . . . . 109
4.4 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
4.4.1 Estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
4.4.2 Elasticities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
4.4.3 Consumer Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
4.5 Quantitative Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
4.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Appendix A: Counties of the (Non)Metropolitan Areas . . . . . . . . . . . 129
Appendix B: Summary Statistics and Comparative Static Elasticities . . . 130
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133List of Tables
1 Inner German Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XIII
1.1 Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.2 Regression Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.3 Income Regression: Further Results . . . . . . . . . . . . . . . . . . . . . . 17
1.4 Implicit Prices (monthly gures in e) . . . . . . . . . . . . . . . . . . . . . 21
1.5 Descriptive Statistics on the Quality of Life (monthly gures in e) . . . . . 21
1.6 Ranking of Counties and Quality of Life (monthly gures in e) . . . . . . 27
2.1 Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
2.2 Estimation Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
2.3 Hedonic Prices (ine/sqm) . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
VLIST OF TABLES VI
3.1 Descriptive Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.2 Spatial Determinants of the Minimum Wage Incidence . . . . . . . . . . . 69
3.3 Urban Wage Premium: Tobit Regression Results . . . . . . . . . . . . . . . 72
3.4 Urban Wage Premium: Median Regression Results . . . . . . . . . . . . . 75
A.1 Urban Wage Premium: OLS Estimates . . . . . . . . . . . . . . . . . . . . 90
a4.1 Sample Means by Alternatives a . . . . . . . . . . . . . . . . . . . . . . . 108
4.2 Results of the Mixed Logit Estimation . . . . . . . . . . . . . . . . . . . . 115
4.3 Lognormal Distributed Coe cients . . . . . . . . . . . . . . . . . . . . . . 116
4.4 Correlation Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
4.5 Model Predictions I: Number of Households . . . . . . . . . . . . . . . . . 123
4.6 Model Predictions II: Number of Households . . . . . . . . . . . . . . . . . 125
A.1 Sample Means by Alternatives a: Berlin . . . . . . . . . . . . . . . . . . . 130
A.2 Sample Means by Alternatives a: Hamburg . . . . . . . . . . . . . . . . . . 131
A.3 Sample Means by Alternatives a: Munich . . . . . . . . . . . . . . . . . . 131
A.4 Comparative Static Elasticities . . . . . . . . . . . . . . . . . . . . . . . . 132List of Figures
1 Domestic Migration in Germany . . . . . . . . . . . . . . . . . . . . . . . . XIV
1.1 Land Rent and Wage Rate in Spatial Equilibrium . . . . . . . . . . . . . . 7
1.2 Quality of Life in West Germany . . . . . . . . . . . . . . . . . . . . . . . 36
1.3 Quality of Life in East Germany . . . . . . . . . . . . . . . . . . . . . . . . 37
3.1 Incidence of Minimum Wages . . . . . . . . . . . . . . . . . . . . . . . . . 65
3.2 Incidence of Minimum Wages by County Type . . . . . . . . . . . . . . . . 66
3.3 Labor Market Equilibrium in Region i . . . . . . . . . . . . . . . . . . . . 79
3.4 Regional Productivity Di erences with Labor Mobility . . . . . . . . . . . 81
3.5 Spatial E ects of the Minimum Wage . . . . . . . . . . . . . . . . . . . . . 82
4.1 Commuting Patterns in Germany . . . . . . .

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