We study the link between economic structure and growth in the 43 Belgian ‘arrondissements’ between 1991 and 1997. We find empirical evidence that local economic structure has a significant impact on the local growth of the service sector as a whole. Sectoral specialization and competition...

Criticizing the Efficient Market Hypothesis (EMH) on the basis of highly volatile asset prices is conceptually wrong as efficiency is about rationality and information, not about stability. Speculative bubbles are compatible with rational valuation, and hence with market efficiency. As rational...