This paper uses nonparametric techniques to study GDP convergence across German labor market regions and counties during the period 1992-2004. The main result is that regional convergence in unified Germany has been substantial. In the first years after German unification the distribution of GDP...

The role of banks in the transition concerns three issues: the bad loans problem, the role of banks in providing a solution to the problems of corporate governance of privatized enterprises and the access of new enterprises to finance for investment. This paper shows how the combination of early...

This paper analyses the effects of the creation or removal of borders on firms' profits and their optimal location in an autarkic region. A firm chooses a position close to a border if a crucial degree of openness is achieved. Furthermore, the positive effect of removal of borders decreases in...