Climate variables have been omitted, as the climate is
largely homogenous over the small area of Schleswig-Holstein.
Three regions are included in the dataset: the districts at the
North Sea coast, the districts at the Baltic coast and those at the
Elbe.5 The North Sea districts border on the Wadden Sea National
Park. The flora and fauna of this unique area, as well as
the national park's facilities for education are an attraction for
tourists that can only be found at the North Sea. In addition,
the water at the North Sea is generally cooler than at the Baltic,
and the waves tend to be higher. To control for these effects a
dummy variable, NORTH, has been created for the districts at
the North Sea coast. It is also possible, however, that this
variable also picks up a preference for the North Sea coast that
has nothing to do with the coastal landscape, such as the
popularity of the distinctive Frisian culture.
Table 1 presents the variables used in this analysis, and
Table 2 presents the summary statistics of these variables.