New IZA DPs -- Economic Policy
0 views
Skip to first unread message
IZA Publications
Sep 26, 2025, 1:49:45 PM (2 days ago) Sep 26
to it...@umich.edu
Dear Italo Gutierrez,
These new IZA Discussion Papers are now available online.
DP 18036 - Fritz/van der List:
Reshaping the Economy? Local Reallocation Effects of Place-Based Policies
DP 18095 - Chiang/Fan/Hsu:
A Taste of Communists’ Own Medicine: The Political Consequences of Land Reforms in Japan and Taiwan
DP 18103 - Riukula/Väänänen:
Who Gains from Agglomeration? The Wage, Productivity, and Cost Effects of Transport Improvements on Firms and Workers
DP 18107 - Elfert/Thomsen:
The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires
DP 18111 - Strain:
The Economic Benefits of a Strong US Military, Forward Presence, & International Alliances
DP 18116 - Kumar Gautam/Ilirjani/Ukil:
On the Road to Better Life? Rural Road and Economic Development in Albania
Please find the abstracts and download links below.
IZA DP No. 18036
Sarah Fritz, Catherine van der List:
Reshaping the Economy? Local Reallocation Effects of Place-Based Policies
Abstract:
We study the effects of place-based policies on aggregate productivity using administrative data on projects co-financed by the EU in Italy linked to balance sheet data. We exploit quasi-experimental variation in funding for a large place-based policy stemming from measurement error in regional GDP estimates. Results show that the policy likely decreases productivity. Decompositions reveal that aggregate declines are driven by reallocation of labor to low-productivity firms. Mechanism analysis using firm-level event studies reveals that negative reallocation effects are caused by high-productivity firms taking up the funds and subsequently becoming more liquidity constrained, leading to slowdowns in employment growth.
https://docs.iza.org/dp18036.pdf
IZA DP No. 18095
Daniel Minghan Chiang, Elliott Fan, Dexter Hsu:
A Taste of Communists’ Own Medicine: The Political Consequences of Land Reforms in Japan and Taiwan
Abstract:
Postwar land reforms in East Asia were implemented as a geopolitical strategy to curb communism expansion. This paper evaluates their long-term political effects in Japan and Taiwan. In Japan, reform increased support for conservative parties and reduced backing for socialist and communist factions, with intergenerational persistence. Taiwan’s reform similarly bolstered electoral support for the Kuomintang. IV analyses support a causal interpretation. Survey evidence suggests that land acquisition fostered a desire for political stability as the mechanism, rather than through reciprocity or pro-market ideology. These findings highlight land reform’s critical role in shaping postwar political alignment and deflecting communist influence.
https://docs.iza.org/dp18095.pdf
IZA DP No. 18103
Krista Riukula, Touko Väänänen:
Who Gains from Agglomeration? The Wage, Productivity, and Cost Effects of Transport Improvements on Firms and Workers
Abstract:
We study the impact of transport-induced agglomeration on workers' earnings, as well as the productivity and costs of establishments, in the capital region of Finland using comprehensive individual- and establishment-level registry data. To our knowledge, we are the first to jointly examine firm- and worker-level effects of agglomeration. We find that improved workplace-to-workplace accessibility increases employees’ annual earnings, particularly among workers in smaller firms. However, we find no statistically significant effects on value added or labour costs per worker at the establishment level. We propose two potential explanations for this discrepancy: (1) differences in the composition of workers between the worker- and establishment-level analyses due to, for example, new hires, and (2) rising costs associated with increased agglomeration. Further analysis reveals that enhanced accessibility leads to higher establishment employment and increased operating expenses, su ch as rents. Taken together, these findings suggest that the benefits of agglomeration are primarily shared between workers and property owners.
https://docs.iza.org/dp18103.pdf
IZA DP No. 18107
Martin Elfert, Stephan L. Thomsen:
The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires
Abstract:
This paper examines the effects of Argentina’s repeal of the rental law in December 2023, one of the most radical housing policy reforms in Latin America in recent decades. Using weekly data for Buenos Aires from 2023–2024 and applying a Regression Discontinuity Design, we provide causal evidence on short-term supply and price effects. Our results indicate a substantial revival of rental housing supply, while nominal and real rents declined, contrary to theoretical expectations of sharp increases. These findings suggest that deregulation mobilized previously withheld units, temporarily alleviating excess demand. Given Argentina’s volatile context, conclusions remain preliminary yet policy-relevant.
https://docs.iza.org/dp18107.pdf
IZA DP No. 18111
Michael R. Strain:
The Economic Benefits of a Strong US Military, Forward Presence, & International Alliances
Abstract:
When considering the benefits of a strong United States military, it is natural to think of the military’s crucial role in protecting Americans from foreign adversaries and providing security and stability around the world. But safeguarding America’s interests at home and abroad offers the nation substantial economic advantages, as well. Properly understood, the US military offers direct and tangible economic benefits to American businesses, workers, and households.
https://docs.iza.org/dp18111.pdf
IZA DP No. 18116
Santosh Kumar Gautam, Ermal Ilirjani, Patralekha Ukil:
On the Road to Better Life? Rural Road and Economic Development in Albania
Abstract:
This study evaluates the impact of investment in rural roads on household welfare in Albania. Using a difference-in-differences method, we find that treated households experienced a 35-percentage point increase in the quality of roads relative to control households and reduced travel times to the nearest motorable roads. The study also demonstrates that the price and value of residential and farmland increased in the treated communities. Household heads in treated communities were less likely to be unemployed, and there was a higher incidence of self-employment in treated households, which seems to suggest a pattern of households shifting away from paid employment to self-employment in response to improved economic opportunities due to improved connectivity. The study does not find a significant effect on household income, but finds an increase in consumption expenditure. In general, these findings indicate that investments in rural roads have had positive impacts on the welf are of the family in Albania.
https://docs.iza.org/dp18116.pdf
Please click here to change your subscription status.
If you have trouble downloading the papers, or for any other questions regarding the IZA Discussion Paper Series, contact public...@iza.org.
These new IZA Discussion Papers are now available online.
DP 18036 - Fritz/van der List:
Reshaping the Economy? Local Reallocation Effects of Place-Based Policies
DP 18095 - Chiang/Fan/Hsu:
A Taste of Communists’ Own Medicine: The Political Consequences of Land Reforms in Japan and Taiwan
DP 18103 - Riukula/Väänänen:
Who Gains from Agglomeration? The Wage, Productivity, and Cost Effects of Transport Improvements on Firms and Workers
DP 18107 - Elfert/Thomsen:
The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires
DP 18111 - Strain:
The Economic Benefits of a Strong US Military, Forward Presence, & International Alliances
DP 18116 - Kumar Gautam/Ilirjani/Ukil:
On the Road to Better Life? Rural Road and Economic Development in Albania
Please find the abstracts and download links below.
IZA DP No. 18036
Sarah Fritz, Catherine van der List:
Reshaping the Economy? Local Reallocation Effects of Place-Based Policies
Abstract:
We study the effects of place-based policies on aggregate productivity using administrative data on projects co-financed by the EU in Italy linked to balance sheet data. We exploit quasi-experimental variation in funding for a large place-based policy stemming from measurement error in regional GDP estimates. Results show that the policy likely decreases productivity. Decompositions reveal that aggregate declines are driven by reallocation of labor to low-productivity firms. Mechanism analysis using firm-level event studies reveals that negative reallocation effects are caused by high-productivity firms taking up the funds and subsequently becoming more liquidity constrained, leading to slowdowns in employment growth.
https://docs.iza.org/dp18036.pdf
IZA DP No. 18095
Daniel Minghan Chiang, Elliott Fan, Dexter Hsu:
A Taste of Communists’ Own Medicine: The Political Consequences of Land Reforms in Japan and Taiwan
Abstract:
Postwar land reforms in East Asia were implemented as a geopolitical strategy to curb communism expansion. This paper evaluates their long-term political effects in Japan and Taiwan. In Japan, reform increased support for conservative parties and reduced backing for socialist and communist factions, with intergenerational persistence. Taiwan’s reform similarly bolstered electoral support for the Kuomintang. IV analyses support a causal interpretation. Survey evidence suggests that land acquisition fostered a desire for political stability as the mechanism, rather than through reciprocity or pro-market ideology. These findings highlight land reform’s critical role in shaping postwar political alignment and deflecting communist influence.
https://docs.iza.org/dp18095.pdf
IZA DP No. 18103
Krista Riukula, Touko Väänänen:
Who Gains from Agglomeration? The Wage, Productivity, and Cost Effects of Transport Improvements on Firms and Workers
Abstract:
We study the impact of transport-induced agglomeration on workers' earnings, as well as the productivity and costs of establishments, in the capital region of Finland using comprehensive individual- and establishment-level registry data. To our knowledge, we are the first to jointly examine firm- and worker-level effects of agglomeration. We find that improved workplace-to-workplace accessibility increases employees’ annual earnings, particularly among workers in smaller firms. However, we find no statistically significant effects on value added or labour costs per worker at the establishment level. We propose two potential explanations for this discrepancy: (1) differences in the composition of workers between the worker- and establishment-level analyses due to, for example, new hires, and (2) rising costs associated with increased agglomeration. Further analysis reveals that enhanced accessibility leads to higher establishment employment and increased operating expenses, su ch as rents. Taken together, these findings suggest that the benefits of agglomeration are primarily shared between workers and property owners.
https://docs.iza.org/dp18103.pdf
IZA DP No. 18107
Martin Elfert, Stephan L. Thomsen:
The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires
Abstract:
This paper examines the effects of Argentina’s repeal of the rental law in December 2023, one of the most radical housing policy reforms in Latin America in recent decades. Using weekly data for Buenos Aires from 2023–2024 and applying a Regression Discontinuity Design, we provide causal evidence on short-term supply and price effects. Our results indicate a substantial revival of rental housing supply, while nominal and real rents declined, contrary to theoretical expectations of sharp increases. These findings suggest that deregulation mobilized previously withheld units, temporarily alleviating excess demand. Given Argentina’s volatile context, conclusions remain preliminary yet policy-relevant.
https://docs.iza.org/dp18107.pdf
IZA DP No. 18111
Michael R. Strain:
The Economic Benefits of a Strong US Military, Forward Presence, & International Alliances
Abstract:
When considering the benefits of a strong United States military, it is natural to think of the military’s crucial role in protecting Americans from foreign adversaries and providing security and stability around the world. But safeguarding America’s interests at home and abroad offers the nation substantial economic advantages, as well. Properly understood, the US military offers direct and tangible economic benefits to American businesses, workers, and households.
https://docs.iza.org/dp18111.pdf
IZA DP No. 18116
Santosh Kumar Gautam, Ermal Ilirjani, Patralekha Ukil:
On the Road to Better Life? Rural Road and Economic Development in Albania
Abstract:
This study evaluates the impact of investment in rural roads on household welfare in Albania. Using a difference-in-differences method, we find that treated households experienced a 35-percentage point increase in the quality of roads relative to control households and reduced travel times to the nearest motorable roads. The study also demonstrates that the price and value of residential and farmland increased in the treated communities. Household heads in treated communities were less likely to be unemployed, and there was a higher incidence of self-employment in treated households, which seems to suggest a pattern of households shifting away from paid employment to self-employment in response to improved economic opportunities due to improved connectivity. The study does not find a significant effect on household income, but finds an increase in consumption expenditure. In general, these findings indicate that investments in rural roads have had positive impacts on the welf are of the family in Albania.
https://docs.iza.org/dp18116.pdf
Please click here to change your subscription status.
If you have trouble downloading the papers, or for any other questions regarding the IZA Discussion Paper Series, contact public...@iza.org.
IZA Publications
Sep 26, 2025, 1:51:41 PM (2 days ago) Sep 26
to italo...@gmail.com
Reply all
Reply to author
Forward
0 new messages