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Unification and the policy predicament in Germany

  • Hughes Hallett, A.
  • Ma, Y.
  • Melitz, J.

We argue that wages have increased so far ahead of labor productivity in east Germany as to produce a problem that will continue to hound German policy-makers for the next two decades.

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File URL: http://www.sciencedirect.com/science/article/B6VB1-3VWTBDK-3/2/43ac02edd1bd19958e7f4f0265f9c55f
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 13 (1996)
Issue (Month): 4 (October)
Pages: 519-544

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Handle: RePEc:eee:ecmode:v:13:y:1996:i:4:p:519-544
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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  1. Burda, Michael C & Funke, Michael, 1993. "Eastern Germany: Can't We Be More Optimistic?," CEPR Discussion Papers 863, C.E.P.R. Discussion Papers.
  2. Franz, Wolfgang & Oser, Ursula & Winker, Peter, 1993. "Migratory movements in a disequilibrium macroeconometric model for West Germany," Discussion Papers, Series II 202, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
  3. Mckibbin, W.J., 1990. "Some Global Macroeconomic Implications Of German Unification," Papers 81, Brookings Institution - Working Papers.
  4. Lewis S. Alexander & Joseph E. Gagnon, 1990. "The global economic implications of German unification," International Finance Discussion Papers 379, Board of Governors of the Federal Reserve System (U.S.).
  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. Christian Thimann & Michael Breitner, 1995. "Eastern Germany and the conflict between wage adjustment, investment, and employment: A numerical analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(3), pages 446-469, September.
  7. Gerlinde Sinn & Hans-Werner Sinn, 1994. "Jumpstart: The Economic Unification of Germany," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691728, June.
  8. Hughes Hallett, A J & Ma, Yue, 1993. "East Germany, West Germany, and Their Mezzogiorno Problem: A Parable for European Economic Integration," Economic Journal, Royal Economic Society, vol. 103(417), pages 416-28, March.
  9. Hallett, A. J. Hughes & Ma, Yue, 1994. "Real adjustment in a union of incompletely converged economies: An example from East and West Germany," European Economic Review, Elsevier, vol. 38(9), pages 1731-1761, December.
  10. Rudiger Dornbusch & Holger Wolf, 1992. "Economic Transition in Eastern Germany," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 235-272.
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