• Analyses & Alternatives
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• v.6 no.2
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• pp.155-183
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• 2022

The purpose of this study is to econometrically analyze the negative impact of the May 18 Democratic Uprising on the Gwangju/Jeonnam regionional economy using the Synthetic Control Method (SCM). The SCM SCM is a methodology similar to the difference-in-difference(DID) method of microeconometrics. It is applied to macroeconomic variables such as country, region, etc. to estimate the causal relationship between specific events and the dependent variable. In this study, as of 1980, local tax revenue data of metropolitan local governments were used as a proxy variable for the economy of the region, and the impact of the May 18 Democratic Uprising on the economy of Gwangju/Jeonnam region was analyzed through various socio-economic indicators. In this study, data were used to analyze from 1971 to 2000, and as a result of empirical analysis, local tax revenues in Gwangju/Jeonnam area were less collected than normal routes up to 17%. In addition, the significance of this analysis was confirmed through in-time placebo effect analysis and in-space placebo effect analysis, which are methods of analyzing the robustness of the control group synthesis method.

• Journal of the Korean Regional Science Association
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• v.38 no.2
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• pp.59-72
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• 2022

In line with increasing interest of climate change and pedestrian rights, the city of Seoul has been implementing car-free pedestrian street policies. The government and the private sector agreed to introduce carfree streets, expecting to increase the urban vibrancy and attract customers in the streets. However, studies that empirically analyze the effects of the policy are insufficient, and there are no studies that reevaluate the car-free pedestrian street policy after the COVID-19 outbreak. Therefore, this study evaluates the car-free pedestrian street policy at the commercial street, the Jongno 52-gil, using the synthetic control method. As a result of the analysis, it was found that the car-free pedestrian street policy was valid for enhancing urban vibrancy. Also, it was found that proper time interval is required to assess the policy since the peak increase of policy was observed in 3 months after the policy implementation. However, less than a year, the increase of the de facto population density on the Jongno 52-gil was revealed to be insignificant. In addition, the Jongno 52-gil was more vulnerable in the decrease of the de facto population density in the COVID-19 period than the synthetic control region. The results of this study suggest that long-term population inflow measures and flexible counterplan to contagious diseases are necessary in the car-free pedestrian street policy.

• Environmental and Resource Economics Review
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• v.31 no.3
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• pp.319-342
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• 2022

This study analyzed the effect of pay-as-you-throw bag prices on domestic waste through the natural experiment difference in difference with synthetic control method using cases of price cuts in some districts in Busan in 2019. In order to consider the endogenous problem when estimating demand and price elasticity, the price-invariant district was set as a synthetic control group and the price-cutting district was set as a treatment group. As a result of the analysis, the price elasticity of demand was 0.05~0.11, and the price of the pay-as-you-throw bag had little effect in sales. This seems to be because pay-as-you-throw bag is necessities and account for a very small proportion of household income. This suggests that a policy that can shift the demand curve will be more effective than a price policy to achieve the waste reduction goal because the demand curve is almost vertical.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.5
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• pp.237-250
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• 2022

On September 28, 2020, the Korea Fair Trade Commission introduced a proposed bill entitled the "Fair Online Platform Intermediary Transactions Act." We quantify the impact of this proposed act on Naver, Korea's major digital platform. Finding a proper control unit is not an easy task in social science studies. We overcome this caveat by constructing a synthetic version of Naver using Abadie & Gardeazabal's (2003) synthetic control method. It appears that the economic cost of the proposed act is not negligible at all. Naver's opportunity loss amounted to 16.18% of its market capitalization (approximately 8.5 trillion won in comparison with its pre-regulation market capitalization). Any regulation-based approaches to resolving digital platform issues have both promises and pitfalls. The results highlight that regulatory bodies should carefully gauge the impact of such regulations, as we have seen with Naver's case.