Research

1. The Agglomeration in the Provision of Public Goods (Job Market Paper)

• Abstract: This paper investigates the population's agglomeration effects in public good provision, attributing it primarily to the variety caused by non-excludability. The model incorporates cost-effectiveness and convex land finance revenue based on population density. Based upon Duranton-Puga's framework, I introduce a public sector maximizing service provision. Using China Urban Construction Statistical Yearbook and a private dataset of hospitals, I characterize and quantify the model. Counterfactual analysis reveals that lower tax ratios enhance welfare and reduce inequality, while reducing transfers primarily widens distribution with minimal impact on overall welfare. Notably, even small variations in public service varieties can lead to significant changes in utility from public services, affecting overall welfare and regional disparities. This highlights the importance of public goods varieties.

2. Public Goods, Sectoral Prices and Structural Transformation

• Abstract: This study investigates the role of public goods in driving China's structural transformation. Empirical analysis reveals that public goods have a significant impact on sectoral prices. Specifically, manufacturing production benefits more from public goods, illustrating how public goods can shape structural transformation through price adjustments and demand-side substitution effects. Counterfactual simulations further demonstrate how varying levels of public goods investment can alter the trajectory of structural transformation, providing insights into potential policy implications.

3. Estimating Public Capital's Effects on Prices Using Input-output Table

• Abstract: While existing literature extensively analyzes the impacts of specific infrastructure on the whole economy, research on its heterogeneous effects across industrials' prices remains limited. This paper addresses this gap by examining the impacts of utilizing an input-output framework, I analyze the effects of public capital investment across various industries classified and estimated using Input-Output Accounts Data published by the U.S. Bureau of Economic Analysis. The analysis decomposes the impact into direct and indirect effects through intersectoral linkages. Employing the Leontief inverse, I identify how the relative price changes result from public capital investments, finding an elasticity of 1 % between relative prices and public capital per input.