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A search for multiple equilibria in urban industrial structure

Donald R. Davis; David E. Weinstein

Title:
A search for multiple equilibria in urban industrial structure
Author(s):
Davis, Donald R.
Weinstein, David E.
Date:
Type:
Working papers
Department:
Center on Japanese Economy and Business
Permanent URL:
Series:
Center on Japanese Economy and Business Working Papers
Part Number:
222
Abstract:
Theories featuring multiple equilibria are now widespread across many fields of economics. Yet little empirical work has asked if such multiple equilibria are salient features of real economies. We examine this in the context of the Allied bombing of Japanese cities and industries in WWII. We develop a new empirical test for multiple equilibria and apply it to data for 114 Japanese cities in eight manufacturing industries. The data provide no support for the existence of multiple equilibria. In the aftermath even of immense shocks, a city typically recovers not only its population and its share of aggregate manufacturing, but even the specific industries it had before.
Subject(s):
Economics, Commerce-Business
Item views:
180
Metadata:
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