We build a model of price differentiation with firm heterogeneity, which allows for imperfect competition and market segmentation in the presence of flexible exchange rates as well as horizontal and vertical differentiation and different tastes of consumers in destination markets. We empirically...

In spite of the huge amount of public aids to poor regions, relative movements in the distribution of income, labor productivity and employment rates across European regions show no positive relation with the distribution of the Structural Funds. Remarkable exceptions, however, do exist. This...