This book's thirteen contributions bring together the results of recent research on determinants of regional specialization, growth, and convergence in the context of European integration. They offer fresh theoretical and empirical evidence on patterns of regional production structures,...

This paper studies which social networks maximize trust and welfare when agreements are implicitly enforced. We study a repeated trust game in which trading opportunities arise exogenously and a social network determines the information each player has. We show that cohesive communities, modeled...