Every European Union enlargement has deepened economical divergence between member states and their regions. However, the economic aspect of this issue is only a part of a broad scope of reasons of its internal diversity, including also social, cultural or cognitive dimensions. The history of so...

This paper analyses a general-equilibrium model of the complementarity between economic competition for the allegiance of subjects and military competition for the control of land. In our model economic competition between rival rulers for the allegiance of subjects results in their subjects,...