This paper presents a microfounded theory of long-term development. We model the interplay between economic variables, namely the process of human capital formation and technological progress, and the biological constraint of finite lifetime expectancy. All these processes affect each other and...

This paper provides detailed information about spatial interactions in the job creation process in West German regional labor markets. We investigate spatial (auto-) correlations in the matching process of vacancies and unemployed, examine regional hiring patterns, and identify clusters of...