Working Papers

• Understanding How Partisanship Shapes Household Spending: Evidence from Linked Survey Transaction Data in Korea
  with Seoyoon Jeong, Kwang Hwan Kim, Jongkwan Lee, Myunghwan Lee, and Myungkyu Shim

Abstract: Exploiting the closely contested 2022 South Korean presidential election, we examine whether politically motivated belief changes affect household spending. Using comprehensive individual-level transaction data linked to surveys on demographics, voting behavior, and expectations, we document sharp polarization in aggregate economic beliefs across political groups, while expectations about personal financial conditions remain aligned. Spending responses are muted overall, but short-lived and concentrated among politically engaged individuals: spending rises for supporters of the winning candidate and falls for supporters of the losing candidate. Overall, perceived economic fundamentals change little, while spending responds briefly through sentiment channels among politically engaged households.

• Economic Impact of the Green Transition: Evidence from Korean Gas Stations (under review)
  with Ian Choi , Soonjin Jo, and Myungkyu Shim

Abstract: This paper examines the effects of green infrastructure expansions on local fuel market dynamics, specifically fuel prices and gas station survival. Leveraging a unique policy intervention in South Korea that mandates EV charger installations in residential complexes, we investigate how the expansion of charging networks influences local retail market competition across diverse administrative districts. To address the endogeneity of infrastructure placement, we employ a quasi-experimental design using the stock of apartment units constructed prior to the introduction of EVs as an instrumental variable. We find that 100 additional chargers per city area lowered gasoline and diesel prices by 7.4\% and 8.7\%, respectively, from 2011 to 2023, without affecting gas station numbers. Our findings indicate that while expanding EV networks aims to promote green transitions, the resulting competitive pressure may lower the relative cost of fossil fuels, potentially creating a negative externality that slows the pace of EV adoption.

Works in Progress

• The Erosion of Creative Destruction in Aging Economies
  with Jongkwan Lee and Hee-Seung Yang

• The Effects of Employment Protection Legislation on Corporate Investment and Employment
  with Hong Seo Kim and Jihwan Kim