Differences in Spatial Effects Between West and East: The Case of Regional Unemployment in Germany
Using spatial panel data modeling, this paper assesses factors in regional unemployment and spatial spillover effects in Germany. Due to historical reasons there exist differences between eastern and western regions of Germany. We explore differences in spatial effects by applying special model specification. We use panel data for 407 out of 413 German regions (using the NUTS III regional structure) for 2001 through 2009.