Table 1: Descriptive statistics
|
Variable |
Mean |
Std. dev. |
Min. |
Max. |
|
Business tax rate |
0.14 |
0.01 |
0.09 |
0.31 |
|
General Expenditures |
16,198.13 |
248,476 |
15.57 |
21,800,000 |
|
Investment Expenditure |
1,449.84 |
9,160.54 |
0 |
519,200 |
|
Population |
7.03 |
45.45 |
0.005 |
3,395.18 |
|
Skilled labor share |
0.06 |
0.03 |
0.003 |
0.59 |
|
Area covered with buildings and streets |
3.79 |
10.68 |
0.01 |
619.28 |
|
Total area |
28.27 |
35.08 |
0.4 |
891.82 |
Note: Statistics refer to 11,208 German municipalities in 2005. Expenditures in 1,000 Eu-
ros. Population in 1,000. Area in km2 . Sources: German Federal Labor Agency, Statistik
Lokal, Ed. 2003-07, and Statistical offices of Berlin-Brandenburg, Bremen, Hamburg and
Sachsen-Anhalt.
Table 2: Included covariates
|
Variable |
Definition |
Mean |
Std. dev. |
|
TAX |
ln (taxrate) |
-1.96 |
0.10 |
|
SKILL |
ln (share of employees with tertiary education) |
-2.92 |
0.46 |
|
POPDEN |
ln (total population / total area) |
0.01 |
1.01 |
|
AREA |
ln (total area) |
7.42 |
1.02 |
|
IDEPRAT |
ln (population aged 15-65 / total population) |
-0.40 |
0.05 |
|
BUILT |
ln (area covered with buildings and streets / total area) |
-2.32 |
0.56 |
|
INV |
ln (investment expenditure / total expenditure) |
-1.96 |
0.88 |
|
EAST |
Dummy for East Germany |
0.26 |
0.44 |
Note: Panel of 11,094 municipalities with at least two consecutive observations over the
period 2001-2005.
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