This article develops a model with indivisible infrastructure projects which are too large to operate on regional level due to credit constraints. We investigate the performance of different forms of centralized governments. Our focus is on central legislatures with regional representatives with...

This paper develops a model of similarity-based predictions combined with heterogeneous and endogenous information about population groups. Group-specific evaluations of decision makers endogenously result from former interactions with group members. A priori, no group-specific preferences or...

We present a semi-endogenous model of regional growth and development without scale effects. In this model of a small developing region the world growth rate of technical progress is given. Regional growth is driven by technological change induced by imitation. Imitation is determined by...

Benhabib and Spiegel (1994) argue that regressing cross-country income changes on a catch-up term has the ability to distinguish between the Nelson-Phelps and Neo-classical approach. This paper circumstantiates that these findings constitute a statistical artefact according to Galton's Fallacy.

This paper tests the Nelson-Phelps hypothesis with recently developed panel cointegration tests and new cross-country datasets. The empirical results give evidence that all types of education are important for TFP growth and that there is an interaction between education and the distance to the...