Lars Lund
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Lars Lund: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Abstract: Using the seminal work of Blanchard and Katz on regional development as a frame a
small number of macro economic key figures are looked upon for Bornholm, the Capital Area and
the country. The model used is presented and even though the analysed time period is short, a
comparison is made with the hypotheses or predictions of the model regarding employment, rate of
unemployment and wages or wage incomes. Participation rates and migrations are also touched
upon. An expectation that a negative chock to employment on Bornholm in 1988 permanently
reduced the level of employment has not been confirmed; rather it seems that negative trends are
found for Bornholm and for Københavns Amt. The data do not show a return to equilibrium values
of relative wages and rates of unemployment after a business cycle.
Keywords: macro economic; regional development; Bornholm; Denmark; employment; unemployment
31 pages, May 17, 2001
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