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Following German reunification in 1990, East Germany's centrally planned economy was abolished and replaced by West … Germany's social market economy. Western Germany has since provided vast financial support to aid the transformation, and … enable eastern Germany to catch-up with western Germany's productivity and living standards. This book evaluates the main …
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Consider a union of atomistic member states, each faced with idiosyncratic business-cycle shocks. Private cross-border risk-sharing is limited, giving a role to a federal unemployment-based transfer scheme. Member states control local labor-market policies, giving rise to a trade-off between...
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Consider a union of atomistic member states, each faced with idiosyncratic business-cycle shocks. Private cross-border risk-sharing is limited, giving a role to a federal unemployment-based transfer scheme. Member states control local labor-market policies, giving rise to a trade-off between...
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We study the channels of interstate risk sharing in Germany for the time period 1970 to 2006 following the methodology … 1994 pre-unification Germany we find that about 19 percent of shocks to a state's gross domestic product (GDP) are smoothed … period, we also split our sample between West and East German states. In West Germany, 63 percent of idiosyncratic income …
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