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Work in Progress

The Welfare Effects of Invisible Densification, with Jiayin Hu, Shangchen Li, and Yue Yu

(Draft available upon request)​

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Abstract: Reconstructing existing housing stock has long been a crucial yet understudied strategy for increasing affordable housing. This paper examines both the causal impacts of such practices on rents and housing prices and their distributional effects on residents' welfare. We exploit the business expansion of the largest PropTech rental firm as a natural experiment. The firm provides a specific reconstruction service: remodeling, which converts living rooms into additional bedrooms and leases these bedrooms to separate tenants. Using an instrumental variable approach based on buildings' suitability for remodeling, we find that a 1% increase in remodeled apartments decreases bedroom rents by 0.9%, non-remodeled apartment rents by 0.5\%, and apartment sale prices by 2.2%. To examine the underlying mechanisms, we develop a structural model that incorporates heterogeneous tenants and landlords' remodeling decisions. The model is further utilized to analyze tenants' optimization behavior in the housing market and assess the distributional impacts of remodeling activity.

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The Recovery of Forest and its Impacts on Left-Behind Children in Western China, with Christopher Timmins

 (Draft available upon request)

 

Abstract:  This paper explores the effectiveness of these policies on afforestation on rural families (including adultsand children) considering policy-induced land transition and labor migration. Embedding changes in land use and labor allocation in the triple difference approach and the instrumental variable approach, we extend afforestation studies in three dimensions: characterizing its short- and long-run effects on income and off-farm migration, estimating its spillover effects on Left Behind Children, and evaluating its distributional welfare effects. The results provide evidence of negative effects on vulnerable groups and left-behind children, showing that lower-income rural adults are significantly more likely to out-migrate for urban jobs corresponding to afforestation induced land transition. Though children are less likely to quit schools due to compensation from afforestation and remittance, left-behind children’s education performance and life attainments including marriage, health, and income in adulthood are adversely affected. Afforestation policies have regressive impacts and favor wealthy families and families with less arable land. Provided that the PES policy was designed to protect forest resources as well as alleviate poverty in rural areas, the differential welfare
results raise the concern of environmental justice in policy design and evaluations.

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Presented at Western Economic Association (WEAI) Annual Conference, Southern Economic Association (SEA) Annual Conference, AARES Conference, NAREA Scholar Circle

Impacts of Transportation Infrastructure on Labor Market and Residential Mobility: the Effects of New Metro Lines in Los Angeles, with Chris Severen

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Crafting the Soundscape of the Future: Economic Impacts of Traffic Road Noise, with Yatang Lin and Cong Peng

funded by General Research Fund (GRF), 2024

 

High-speed Rail and Migration in China, with Deyu Rao, Lin Yang and Yatang Lin

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