The paper sets up a two-region endogenous growth model to discuss growth and regional convergence of unified Germany. It emphasises the role of private and public capital accumulati on during the developing process. The theoretical part derives fiscal policy rules which establish convergence of...

The paper examines the relation between industrial mix and regional productivity growth. For this purpose, a dynamic model of the open economy with differentiated sectoral knowledge formation and incomplete interregional knowledge diffusion is constructed. The theoretical framework is first used...

1 Introduction and Motivation -- 2 Why and How Does Economic Activity Grow? An Overview of the Literature -- 3 Why and How Does Economic Activity Concentrate in Space? Another Overview of the Literature -- 4 Spatial Knowledge Spillovers and the Dynamics of Agglomeration and Regional Growth -- 5...