We investigate the impact of the recent global recession on European countries and regions. We first identify the heterogeneous impact of the global recession on individual European countries and regions. We then discuss three classes of explanations for spatial heterogeneity in the severity of...

After the Indian Ocean tsunami in 2004, Northern Sumatra experienced three shocks: a negative shock from the tsunami itself and the Nias earthquake that followed in 2005; a positive shock from the massive allocation of recovery funds; and another positive shock from the peace deal between the...

In this paper we develop a two-sector endogenous growth model with a dual labour market, based on efficiency wages. Growth is driven by intentional R&D performed in the high-tech and high-wage sector. How a change in rivalry among firms affects simultaneously growth and unemployment is examined....