The returns to scale in the matching function play an important role in models with endogenous search effort. Due to positive externalities, increasing returns to scale in matching can support high or low activity equilibrium in the labour market. In this study, we examine this issue using panel...

This paper estimates β convergence across the 88 Finnish small-scale subregions from 1934 to 1993 using taxable per capita income as an indicator of income level. The results resemble those obtained in other studies for larger areas: regional β convergence in Finland has been about 2% per year...

The Finnish economy experienced dramatic changes in the early 1990s. The collapse of the economy in 1991 resulted in a 12% decline in GDP over the years 1991-1993, leading to a significant fall in the demand for labour and a rise in unemployment. The study contributes to the discussion on...

This paper analyses the connection between aggregate economic fluctuations and regional productivity convergence in Finland during the period 1988-95. Markov chain transition matrices and mobility indices were used to examine the regional distribution of productivity. The results indicated that...