In order to evaluate the allocational effectiveness of regional policy when harmonizing regional economic conditions firms' preferences play a pivot role. If harmonization hinders risk diversification of the firm, then instead of regional diversification of capital agglomeration of capital...

Concerns are mounting over the potential for weak future growth as the Korean economy faces a wide range of structural issues including an aging society, a crisis in key regional industries, and the COVID-19 pandemic. Due to these concerns, the Korean government has established innovation growth...

High-skilled workers and high-productivity firms co-locate in large cities. In this paper, I study how the two-sided sorting of workers and firms affects spatial earnings inequality, efficiency of the allocation of workers and firms across cities, and the welfare consequences of place-based...