Development gaps are a common feature throughout the regions of the European Union, and Romania is no exception. Despite all the political and financial efforts, the convergence process is lengthy and complex, and the gaps with the deepest economic and social roots are the most difficult to be...

This paper revisits the question of how brain drain affects the optimal education policy of a developing economy. Our framework of analysis highlights the complementarity between public spending on education and students' efforts to acquire human capital in response to career opportunities at...