unbalanced panel over the transition period 1994 to 1998. We adopt a translog stochastic frontier model to estimate technical … efficiency in eastern and western Germany. The results indicate that firms in eastern Germany are significantly less efficient … than firms in western Germany. The paper also examines some of the possible correlates of regional variations in firm …

The paper sets up a two-region endogenous growth model to discuss growth and regional convergence of unified Germany … consistent with the data on government spending in East and West Germany after unification the model suggests that East Germany … will reach eighty percent of West Germany's income per capita between 20 and 30 years after unification and that actual …