Industrial policies and production networks

Friday, Oct 5, 2018

The history of economic growth in Japan, South Korea, China and other ASEAN countries suggests that industrial policy can work. But how does a government choose which industries or sectors to target in a way that makes economic sense? Should governments focus on the industries that add most value to the economy, or on ones that suffer from the most imperfections, or weaknesses? New work by JRCPPF postdoctoral associate Ernest Liu provides sharp new insights into these questions. 

South Korea’s IO demand matrix, with HCI targeted sectors highlighted in dark

South Korea’s Input-Output demand matrix, with Heavy Chemical Industry (HCI) sectors highlighted in dark.

Liu’s paper presents a novel way of characterizing industries, not by size or imperfection, by the extent to which they serve as an input into the supply chains of other industries. Targeting industrial policies, such as subsidies or directed credit, towards the more upstream industries in a production network generally leads to more efficient economic outcomes. Applying the model to data, Liu measures the “upstreamness” of industries in South Korea and China, and demonstrates that these countries subsidized exactly the set of industries that theory predicts they should have.

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Papers, Videos, and Slides

Property Rights & Taxation

Moderator: Atif Mian, Princeton University

Anthony Lee Zhang, Ph.D. Candidate, Stanford Graduate School of Business
"Competition Policy and Price Discovery" | Slides

Video

https://youtu.be/EVzaWDsCh1g

Matthew Prewitt, Deputy Director, RadicalxChange
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Video

https://youtu.be/2kkVG8VPYqY

Robin Hanson, Associate Professor of Economics, George Mason University
"Decentralized Zoning via Conditional Harberger Taxes" | Slides

Video

https://youtu.be/Qt8QU2slqQg
Decentralization and Competition

Moderator: Ernest Liu, Princeton University

Steve Randy Waldman, interfluidity.com
"a tao of (de)centralization" | Slides

Video

https://youtu.be/xVlvyRyR03s
Rachel Cummings, Assistant Professor of Industrial and Systems Engineering and Computer Science, Georgia Tech
"Market Design for Personal Data" | Slides

Video

https://youtu.be/OY8Y2V8z7Zg
Ioana Marinescu, Assistant Professor of Economics, University of Pennsylvania
"Labor Market Concentration and Legal Implications" | Slides

Video

https://youtu.be/chWtWKKI2Dw
Community

Moderator: Karsten Müller, Postdoctoral Research Associate, Princeton University

Devon Zuegel, Engineer, Github
"What can physical infrastructure teach us about open source?" | Slides

Video

https://youtu.be/WH3MhRG_RIU
Zoë Hitzig, Ph.D. Candidate, Department of Economics, Harvard University
"Optimal Matching Funds for Public Goods" | Slides

Video

https://youtu.be/VP11FsoGgOI
Nicole Immorlica, Senior Researcher, Microsoft Research-New England
"Quadratic Voting" | Slides

Video

https://youtu.be/HABnsriMehI

 

Organization

Ananya Chakravarti, Assistant Professor of History, Georgetown University
"Multidisciplinary Academic Research and RadicalxChange" | Slides 

Lucas Geiger, Co-founder, Wireline
"Open-source cloud application marketplaces" | Slides 

Aparna Krishnan, Executive Vice-President, Blockchain Berkeley
"Mechanism Design and Decentralized Finance" | Slides

Moderator: Matthew Prewitt, RadicalxChange

Video of Session 4: Organization

 

Keynote: The Political Economy of Increasing Returns
Glen Weyl, Principal Researcher, Microsoft Research and Visiting Research Scholar, Princeton University
"The Political Economy of Increasing Returns" | Slides 

Video of Keynote Address