The Determinants of Quality Specialization

Dingel, Jonathan I.

doi:10.2139/ssrn.2621678

Cited by 28 publications

(37 citation statements)

References 86 publications

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“…Our evidence on the relevance of demand-side factors in explaining product availability relates toDingel (2014) who shows that home-market demand explains as much of the positive relationship between local income and the export quality of US cities as other supply-side factors.…”

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confidence: 81%

Is the Focus on Food Deserts Fruitless? Retail Access and Food Purchases Across the Socioeconomic Spectrum

Handbury

Rahkovsky

Schnell³

2015

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Using novel data describing the healthfulness of household food purchases and the retail landscapes consumers face, we measure the role of access in explaining why wealthier and more educated households purchase healthier foods. We find that spatial differences in access, though significant, are small relative to spatial differences in the nutritional content of sales. Socioeconomic disparities in nutritional consumption exist even among households with equivalent access, and the healthfulness of household consumption responds minimally to improvements in local retail environments. Our results indicate that access-improving policies alone will eliminate less than one third of existing socioeconomic disparities in nutritional consumption.

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confidence: 81%

Is the Focus on Food Deserts Fruitless? Retail Access and Food Purchases Across the Socioeconomic Spectrum

Handbury

Rahkovsky

Schnell³

2015

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“…For bilateral pairs with zero commuting, the model implies negligible amenities (B ni → 0) and/or prohibitive commuting costs (κ ni → ∞). 22 In the first step of our gravity equation estimation, we use this decomposition (20) and our expression for commuting flows (11) to estimate the reduced-form distance coefficient (−φ):…”

Section: The Magnitude and Gravity Of Commuting Flowsmentioning

confidence: 99%

“…We estimate the gravity equation (22) imposing φ = 4.43 from our estimates above and identify from the coefficient on wages. Estimating (22) using OLS is potentially problematic, because workplace wages (w i ) depend on the supply of commuters, which in turn depends on amenities that appear in the error term (log u ni ).…”

Section: The Magnitude and Gravity Of Commuting Flowsmentioning

confidence: 99%

Commuting, Migration and Local Employment Elasticities

Monte¹,

Redding²,

Rossi‐Hansberg³

2015

172

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Many changes in the economic environment are local, including policy changes and infrastructure investments. The effect of these changes depends crucially on the ability of factors to move in response. Therefore a key object of interest for policy evaluation and design is the elasticity of local employment to these changes in the economic environment. We develop a quantitative general equilibrium model that incorporates spatial linkages between locations in goods markets (trade) and factor markets (commuting and migration). We find substantial heterogeneity across locations in local employment elasticities. We show that this heterogeneity can be well explained with theoretically motivated measures of commuting flows. Without taking into account this dependence, estimates of the local employment elasticity for one location are not generalizable to other locations. We also find that commuting flows and their importance cannot be accounted for with standard measures of size or wages at the county or commuting zone levels.

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“… Dingel () shows a strongly positive relationship between estimated demand shifter and prices using micro data on U.S. manufacturing plants. …”

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confidence: 99%

Asymmetric effects of financial development on export price and quality across countries

Choi

Lugovskyy

2019

Rev International Economics

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A large body of literature has emphasized the importance of financial development (FD) for economic growth and exporting. 1 Nonetheless, recent empirical findings have shown that FD does not affect the growth of low-income countries. 2 These findings raise questions about how FD affects exporting, and whether FD benefits all exporting countries equally.These aforementioned questions motivate us to explore the effects of FD on two essential components of exporting: export prices and export quality. 3 We find that these effects are highly asymmetric across countries, and we provide an explanation for these asymmetries. Additionally, our findings suggest that improving the quality of financial institutions alone is unlikely to boost quality or lower export prices in low-income countries.Theoretically, we provide a unifying framework to explain why and how the effects of FD on export quality and prices differ across countries. A key component of our model is based on the AbstractWe derive two novel predictions: financial development has a more pronounced effect on quality in countries with greater labor productivity, and its effect on export prices is U-shaped in labor productivity. We confirm our predictions empirically and show that the negative effect of financial development on export prices is greatest in middle-productivity countries, while its positive effect on quality is strongest in the most productive countries. Our findings contribute to the literature on the poverty trap: we argue that improving the quality of financial institutions alone is unlikely to boost quality or lower prices of the poorest countries. | 595 CHOI and LUGOVSKYYcomplementarities between different inputs-capital, labor productivity, and entrepreneurial talentin the production function of quality. Building on Verhoogen (2008), we employ a discrete choice model, where the production function of quality contains the elements of O-ring technology (Kremer, 1993). We extend it in two important dimensions: first, we introduce the liquidity constraints of exporting firms in the model and assume that the cost of borrowing decreases in FD. 4 Second, in line with the labor search literature, 5 we assume a positive correlation between labor productivity and entrepreneurial talent across countries.The model provides three testable predictions: (i) controlling for quality, better FD decreases export prices; (ii) FD has a positive effect on export quality, and more so in countries with higher labor productivity, and (iii) for sufficiently large parameter regulating the share of capital in the production function, the effect of FD on export prices is U-shaped in labor productivity.The first effect is the most straightforward: given the same set of inputs, a lower cost of borrowing reduces the total cost and sequentially the price. The second effect is due to the super-modularity of the production function of quality in inputs. As a result, any reduction in the variable production cost-including lower borrowing costs owing to better developed financi...

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The Determinants of Quality Specialization

Abstract: for invaluable discussions, guidance, and support. Thanks to the editor, three anonymous referees,

Cited by 28 publications

References 86 publications

Is the Focus on Food Deserts Fruitless? Retail Access and Food Purchases Across the Socioeconomic Spectrum

Is the Focus on Food Deserts Fruitless? Retail Access and Food Purchases Across the Socioeconomic Spectrum

Commuting, Migration and Local Employment Elasticities

Asymmetric effects of financial development on export price and quality across countries

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