Regional labor markets are characterized by huge disparities between unemployment rates. Models of the New Economic Geography explain how disparities between regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by...

Warum sind in der jüngeren Vergangenheit keine Konvergenzprozesse der wirtschaftlichen Verhältnisse zwischen Regionen in Ländern wie Italien oder Deutschland mehr festzustellen? Seit Jahren kann zwischen Nord- und Süd-italien bzw. West- und Ostdeutschland keine signifikante Annäherung mehr...

The heterogeneous connections model is a generalization of the homogeneous connections model of Jackson and Wolinsky (1996) in which the intrinsic value of each connection is set by a discrete, positive and symmetric function that depends solely on the types of the two end agents. Core periphery...

The question regarding the effects of changing transports costs on the size distribution of cities is an important topic of systems of cities research. The so-called New Economic Geography has already given some answers to this question. One central assumption in this kind of model is a very...