The paper analyzes the agglomeration wage differerential using panel micro data with regional information for the time period 1984-1997. Referring to new contributions to regional economics, several theoretical explanations for spatial wage differentials are discussed. The empirical approach...

The paper deals with the deterioration of human capital during spells of unemployment. In our model the probability of leaving the unemployment pool decreases with the duration of unemployment. It can be shown that with a linear deterioration function and a simple distribution function for the...

The paper deals with the estimation of a simultaneous equation system with time-varying parameters. The system is formulated in state space form and it is shown that the Kalman filter algorithm is applicable. The prior information required by this estimation method can be obtained by...