The Triangle of German Democratic Capitalism - Growth, Housing and Voting (REG-TDC)
Charlotte Bartels (German Institute for Economic Research (DIW Berlin)
Timur Ergen (Max Planck Institute for the Study of Societies, Cologne)
Sebastian Kohl (Freie Universität Berlin)
Funded by the Deutsche Forschungsgemeinschaft/ German Research Foundation (project number: 545938199)
The interplay between democracy and capitalism in the German economic model is predominantly studied at the national level in comparison to other countries, ignoring the large regional variation. While economic historians have made important advances in studying Prussian counties or the “German lands” through regional or urban datasets before 1945, the study of the German political economy in regional perspective post-1945 has not been explored to a similar degree, not least due to a lack of regionally harmonized data. This interdisciplinary project on the regional Triangle of Democratic Capitalism – or REG-TDC – therefore proposes to establish within a first work package a harmonized county-level panel dataset tackling democratic capitalism from three angles: (i) economic growth in the form of GDP, industrial production and employment, and income distribution data, (ii) living standards and spatial social organization in the form of data on housing and house prices, and (iii) democratic politics in the form of a panel of regional electoral data. The outcome of this work package will be a database for common use in the scientific community, accompanied by a data documentation paper, as well as python code allowing future database extensions and flexible adjustment of regional units. REG-TDC then serves as an infrastructural stepping stone for advancing our understanding of democratic capitalism through regional variation in work packages 2 (growth, inequality, voting) and 3 (housing construction, prices and growth). More concretely, we will investigate how industrial change affected inequality and the German growth model, how the evolution of rents and house prices affected voting outcomes and housing construction as well as how the housing sector is associated with the German growth model. The project brings together the expertise of economic history, political economy, historical sociology, and economics in order to study core aspects of democratic capitalism from a regional historical perspective, using cutting-edge econometric methods.