Publication
Jan 2007
This paper analyzes the deep structural change and the integration process involving both capital deepening and labor thinning in Eastern Germany that followed the "unification shock." The author proposes a constant-returns neoclassical model of economic integration which can account for these facts. The model also explains persistent wage and capital rate-of-return differentials along the equilibrium path.
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English (PDF, 26 pages, 357 KB) |
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Author | Michael C Burda |
Series | Kiel Institute Working Papers |
Issue | 1306 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |