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Eastern Germany and the Conflict between Wage Adjustment, Investment and Employment : A Numerical Analysis

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Author Info

  • Thimann, C
  • Breitner, M-H

Abstract

Four years after German unification, the economy in eastern Germany has by far still not caught up with the one in western Germany. While wages are close to the western level, productivity and capital stock are still low and unemployment is high. In this paper some light is shed on the dynamics of the adjustment process by studying the linkages between the dynamics of wage adjutment, investment and employment.

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Bibliographic Info

Paper provided by American Institute for Contemporary German Studies- in its series Papers with number 02.

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Length: 19 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:fth:amiger:02

Contact details of provider:
Postal: U.S.A.; Johns Hopkins University, American Institute for Contemporary German Studies. 1400 16th Street, N.W. Suite 420 Washington, D.C. 20036-2217

Related research

Keywords: GERMANY ; WAGE DETERMINATION ; EMPLOYMENT ; INVESTMENTS;

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References

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  1. Hughes Hallett, Andrew & Ma, Yue & Mélitz, Jacques, 1994. "Unification and the Policy Predicament in Germany," CEPR Discussion Papers 956, C.E.P.R. Discussion Papers.
  2. Gerlinde Sinn & Hans-Werner Sinn, 1994. "Jumpstart: The Economic Unification of Germany," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691728, December.
  3. Charles Wyplosz, 1991. "On the real exchange rate effect of German unification," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(1), pages 1-17, March.
  4. Long, Ngo Van & Siebert, Horst, 1991. "A model of the socialist firm in transition to a market economy," Kiel Working Papers 479, Kiel Institute for the World Economy.
  5. George A. Akerlof & Andrew K. Rose & Janet L. Yellen & Helga Hessenius, 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 1-106.
  6. Michael Burda & Michael Funke, 1993. "German trade unions after unification — Third degree wage discriminating monopolists?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(3), pages 537-560, September.
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Cited by:
  1. Marcus Noland & Sherman Robinson & Ligang Liu, 1999. "The economics of korean unification," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 3(3), pages 255-299.
  2. Noland, Marcus & Robinson, Sherman & Wang, Tao, 2000. "Modeling Korean Unification," Journal of Comparative Economics, Elsevier, vol. 28(2), pages 400-421, June.
  3. Gerling, Katja & Schmidt,Klaus-Dieter, 1997. "On the competitive position of Eastern German manufacturing: Why is catching-up so slow?," Kiel Working Papers 825, Kiel Institute for the World Economy.

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