Abstract
We are interested in the county government’s role for the county seat economy. Our suggestion is this: Rather than discuss changes in county seat location at a given budget (representing a rare natural experiment), we should look at changes in county budget holding fixed county seat location (yielding a steady flow of observations). In the paper’s model changes in the county budget translate into changes in county seat employment. In the paper’s empirical test against a sample of German county seats we find it difficult to reject this.
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