The most important policy instrument to promote regional development in the European Union is Strucutral Funds, covering approximately a third of the EU budget. An empirical analysis demonstrates that these funds have on average been ineffective in speeding up the process of convergence with in...

In this paper we extend previous models of migration networks and ethnic cluster formation by considering migration as an ethnic-community wide phenomena where established migrants strategically provide support to newcomers. The incentive to provide support is associated with positive...