Data and Code for: Agglomeration, Misallocation, and (the Lack of) Competition

Principal Investigator(s):  View help for Principal Investigator(s) Wyatt J. Brooks, University of Notre Dame; Joseph P. Kaboski, Univeresity of Notre Dame and NBER; Yao Amber Li, Hong Kong University of Science and Technology

Version:  View help for Version V1

Name File Type Size Last Modified
  Part I 11/01/2021 12:40:PM
  Part II 11/01/2021 12:40:PM
CHANGELOG.txt text/plain 644 bytes 11/01/2021 08:44:AM
File Manifest.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 69.6 KB 11/01/2021 07:14:AM
ReadMe.pdf application/pdf 750 KB 11/01/2021 08:40:AM

Project Citation: 

Brooks, Wyatt J., Kaboski, Joseph P., and Li, Yao Amber. Data and Code for: Agglomeration, Misallocation, and (the Lack of) Competition. Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-11-01. https://doi.org/10.3886/E119222V1

Project Description

Summary:  View help for Summary Industrial agglomeration policies may limit competition. We develop, validate, and apply a novel approach for measuring competition based on the comovement of markups and market shares among firms in the same location and industry. Then we develop a model of how this reduction in competition affects aggregate income. We apply our approach to the well-known special economic zones (SEZs) of China. We estimate that firms in SEZs exhibit cooperative pricing almost three times as intensively as firms outside SEZs. Nevertheless, we model the aggregate consequences of SEZs and find positive effects because markups become higher, but also more equal.
Funding Sources:  View help for Funding Sources International Growth Centre ; HKUST Institute for Emerging Market Studies (IEMS) (IEMS16BM02)

Scope of Project

Subject Terms:  View help for Subject Terms macroeconomics; development
JEL Classification:  View help for JEL Classification
      E23 Macroeconomics: Production
      E60 Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
      L10 Market Structure, Firm Strategy, and Market Performance: General
      O10 Economic Development: General
Geographic Coverage:  View help for Geographic Coverage China


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Published Versions

V1 [2021-11-01]

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