Spatial distribution of urban policy funds in Germany and its determinants

Abstract

Abstract Area-based interventions are one of the ways of addressing problems of disadvantaged urban neighbourhoods. In this paper we take the example of the German urban development support scheme (Städtebauförderung) with the purpose of determining the factors behind the spatial distribution of funds from this policy. The results show a positive association with unemployment rate, and a negative one with the dynamics of population and jobs. This suggests that the allocation of funds to a large extent resembled the distribution of structurally weak areas in Germany. Using geographically weighted regression, we found spatial differences in the goodness of fit of the model as well as in coefficients of explanatory variables. Finally, we also point out some differences between specific programmes forming part of the urban development support scheme.