This book contains a theoretical and empirical analysis of the sources of technological change and economic growth. The first part takes an aggregate view at the growth process. Scale economies and knowledge spillovers are analysed with a broad panel of sectoral data for Germany and the United...

The macroeconomic development in West Germany in the aftermath of unification was characterized by a boom period in 1990/1991, a deep recession in 1992/1993 and a slow recovery since then. In East Germany, in contrast, unification induced a breakdown of production and employment followed by a...