This paper develops a model in which the interaction of entrepreneurial investments and power of the owners of land or other natural resources determines structural change and economic development. A more equal distribution of natural resources promotes structural change and growth through two...

This paper argues that openness to goods trade in combination with an unequal distribution of political power has been a major determinant of the comparatively slow development of resource- or land-abundant regions like South America and the Caribbean in the nineteenth century. We develop a...

This paper develops a two-sector general equilibrium model in which firms in the primary economy have to create workplaces prior to production and product market competition. For this, we introduce the endogenous sunk cost approach with two-stage decisions of firms from IO in the macro-labor...

ein Maßnahmenpaket zur Überwindung der Euro-Schuldenkrise geeinigt. Georg Milbradt, TU Dresden, ist der Ansicht, dass die verabredeten Maßnahmen die Probleme in der Eurozone nicht lösen werden. Zwar knüpfen die Vorschläge an wichtige Probleme an, wie z.B. Schuldenstand, private...

This paper examines the role of both cost-sharing schemes in health insurance systems and entry regulation for pharmaceutical R&D expenditure, drug prices, aggregate productivity, and income. The analysis suggests that both an increase in the coinsurance rate and stricter price regulations...