As a result of external shocks, the productivity of fixed capital may sometimes decrease in certain regions of an economy. There are exogenous obstacles to migration that make it hard for workers to reallocate to more profitable regions. We point to an endogenous obstacle that has not been...

Railways restructuring takes place under very different circumstances and with very different goals in Western Europe, Central and Eastern Europe, and Russia. Observed improvements in productivity associated with vertical access and vertical separation in Western Europe are not certain to be...