In this paper we analyze the effects if two countries, with different settings on the labor market, open their capital markets. To do this we follow the ideas of New Institutional Economics in combination with a new model of economic growth. We will use a Leontief production function, where we derive …

In this paper we investigate the possible consequences of different institutional settings (in casu the legal system) on externalities and their effect on the efficient allocation of externalities. We investigate whether the restriction of marginally low transaction costs can be relaxed if the legal …

In our paper we want to investigate the question whether it will make sense for regions to compete for new high-tech industries to settle down in their region. The justification for giving subsidies is based on the general believe in politics that attracting high-technology firms will cause positive …