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- This is a revised version of University of Munich Discussion Paper Number 90–15. Financial support from the von Humboldt Foundation and the Social Sciences and Humanities Research Council of Canada. to the first author and from the German Science Foundation (DFG) and from the Fulbright Commission to the second author is gratefully acknowledged. The study has benefited from the second author's visit to CentER, Tilburg University, in 1990. We wish to thank John De New for excellent research assistance and Rainer Winkelmann, two anonymous referees and the Editor of this journal for valuable comments.