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Macroeconomic Aspects of German Unification

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  • Hans-Werner Sinn

Abstract

The paper comments on the economic effects of the German unification. Apart from discussing the unification in an international perspective, analyzing the distributional consequences, and pointing to structural adjustment problems, it emphasizes the distinction between the frequently cited money overhang and the real asset overhang which characterizes communist countries. The paper argues that the unification paid too little attention to the latter, endowing East Germans with insufficient claims on state owned enterprises. The centralized privatization of state owned enterprises, which bypasses the East German population, is seen as a major obstacle to quick recovery, and an alternative privatization procedure is discussed.

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File URL: http://www.nber.org/papers/w3596.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3596.

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Date of creation: Jan 1991
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Publication status: published as Economic Aspects of German Unification, ed. P.J. Welfens. Springer, 1992, pp. 79-133
Handle: RePEc:nbr:nberwo:3596

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Cited by:
  1. Sinn, Hans-Werner & Ochel, Wolfgang, 2003. "Social Union, Convergence and Migration," Munich Reprints in Economics 948, University of Munich, Department of Economics.
  2. Hans-Werner Sinn & Martin Werding, 2001. "Zuwanderung nach der EU-Osterweiterung: Wo liegen die Probleme?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 54(08), pages 18-27, 05.
  3. Schmieding, Holger & Koop, Michael J., 1991. "Privatisierung in Mittel- und Osteuropa: Konzepte für den Hindernislauf zur Marktwirtschaft," Kiel Discussion Papers 165, Kiel Institute for the World Economy (IfW).
  4. Hans-Werner Sinn, 1992. "Privatization in East Germany," NBER Working Papers 3998, National Bureau of Economic Research, Inc.
  5. 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.
  6. 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.
  7. Manfred Keil & Andrew Newell, 1993. "Internal migration and unemployment in Germany: An anglo-irish perspective," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(3), pages 514-536, September.
  8. Hans-Werner Sinn & Martin Werding, 2001. "Immigration Following EU Eastern Enlargement," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 2(2), pages 40-47, October.

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