On Friday 14 November Lars B. Termansen successfully defended his PhD dissertation at Department of Economics. In his dissertation, Lars shows that the equalisation grant reform in the wake of the structural reform in Denmark did not have a negative impact on the Danish economy. In fact, the contraction of the municipal sector in the Copenhagen region has beneficial effects on the private sector: This enforces the Copenhagen region's concentration of economic activity. The findings in the dissertation are in large part based on the theoretical findings by 2008 Nobel Prize winner, Paul Krugman. Lars' studies have been sponsored by Copenhagen Economics with support from the Ministry of Science, Technology and Innovation.