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Threshold Effects and Regional Economic Growth-Evidence from West Germany
The authors study an overlapping generations model of human capital accumulation with threshold effects using regional data for West Germany. The basic goal is to shed light on what makes German regions grow. The paper finds that the relative income distribution appears to be stratifying into a trimodal distribution.
Link
http://gulliver.econ.uni-hamburg.de/IWWT/homepage/qmwps/qm105.pdf