OIR is currently working with complan Kommunalberatung on a support framework for the implementation of urban development funding in Germany. The client is the Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR). The OIR team – Ursula Mollay, Erich Dallhammer, Chien-Hui Hsiung and Arndt Münch – has now also been commissioned to develop a detailed concept for the pilot application of the difference-in-differences approach.
This econometric method allows for an estimation of the effects of a measure. Using urban development funding as an example, the development of funded areas is compared with that of control areas that are as similar as possible but not funded, over the period before and after the funding. The difference in changes between the two groups of areas provides evidence of the effects of the funding.
Applying this approach to the development of urban areas is innovative, but also presents a major challenge due to the complex factors influencing urban development. The aim of the additional commission is to clarify the extent to which this methodology could be applied to urban development funding based on the disaggregated data available for Germany. We are very much looking forward to taking on the particular challenge presented by this exciting research question.
