By contrasting endogenous growth models with facts, one is frequently confronted with the prediction that levels of economic variables, such as R&D expenditures, imply lasting effects on the growth rate of an economy. As stylized facts show, the research intensity in most advanced countries has...

Germany will be one of the core countries in the European Monetary Union (EMU). Currently there is therefore a great interest in issues of labor market and monetary policy in Germany. On the basis of a macroeconometric model we study the interaction of labor market and alternative monetary...