presse@iwh-halle.de
Pills or puts?
Shuo Xia
Financial Times, February 2, 2024
Cities all over the world have a very prominent function for generating creativity and economic growth. The institutional conditions for this function differ a lot between nations, not least between Russia and Germany. The Workshop shall promote the exchange of research results on the impact of these differences on the local economy. The main focus is laid on the urban system in Russia.
This paper looks at the integration of regions and nations through the prism of the merger of populations (societies). The paper employs a particular index of social stress. Stylized examples of the merging of two populations suggest that with integration, the social stress index will increase.
Using a broad set of national industry trade shocks, I employ a novel approach to estimate agglomeration effects by exploiting within industry variation in indirect exposure to the other local industries’ (national) trade shocks across local labor markets.