Spatial Transformation in Historical Perspective: Evidence from Late 19th and Early 20th Century Berlin

This work presents a one-of-a-kind historical data set on Berlin, Germany, from 1875 to 1936, in order to empirically test theoretical implications derived from a general Urban Economics framework in a historical context. A high level of spatial disaggregation of the data allows for assessing the role of rail-based public infrastructure in the generation of effective market access, and property prices within a rapidly growing and very dynamic urban area. It furthermore analyses the transport network’s influence on urban decentralization and changing spatial patterns of economic activity. The development of a multi-level centrality indicator provides the opportunity to assess the contribution of generated market access to the emergence of gradually dispersed commercial activity and sub-centers. While working with both cross-sectional and time-difference estimates, the variation in transport technology serves to test for a gradual change in accessibility and hence the marginal effects of reduced transport costs and increased proximity to stations on historical land values, which are presented at block level. While endogenously determining the moving center of gravity (CBD) over time, it additionally features the observation of both land gradients and travel time gradients in order to test for variation in the city structure until a possible break-up of the historically evolved monocentric equilibrium. Results suggest that centrality generated by the public railway system had a major influence on (re-)location decisions for firms within a growing and decentralizing urban area, which permanently changed the urban patterns. While both a reduction in distance to a station and a reduction of transport costs to the CBD led to a significant premium paid for commercially used plots, which basically supports tendencies towards a rather polycentric structure, the evolution of land gradients in combination with travel time gradients indicates that the monocentric city model still fitted Berlin’s structure until the mid-20th century.