We develop a model of firm learning in volatile markets with noisy signals and test its predictions using historical German data. Firms' forecasts improve with age. We exploit German Reunification as a natural experiment where firms in the East are treated with ignorance about the distribution...

German reunification is an important subject of study as a model of unification for Korea, a country which has remained divided for decades. In the process of German reunification, peace was achieved without any physical conflict. Moreover, economic integration was successfully accomplished...

Die Sächsische Längsschnittstudie begleitet seit 1987 kontinuierlich eine Stichprobe junger Ostdeutscher des Geburtsjahrgangs 1973 auf ihrem Weg vom DDR- zum Bundesbürger. Mit mittlerweile 22 abgeschlossenen Erhebungswellen (2008) zählt die weiterhin laufende Studie zu den weltweit am...

The paper comments on the economic effects of the German unification. Apart from discussing the unification in an international perspective, analyzing the distributional consequences, and pointing to structural adjustment problems, it emphasizes the distinction between the frequently cited money...