The Regional Spillover Effects of the Tohoku Earthquake

40 Pages Posted: 11 Mar 2015

See all articles by Robert Dekle

Robert Dekle

University of Southern California - Department of Economics

Eunpyo Hong

Department of Economics, University of Southern California

Wei Xie

University of Southern California, Department of Economics, Students

Date Written: February 20, 2015

Abstract

In this paper, we trace out how a decline in industrial production in one region can be propagated throughout Japan. We model Kanto as the dominant region, which includes the Tokyo area, and then use the model to analyze how a shock to industrial production in Tohoku–owing to the earthquake can be propagated throughout Japan. In our econometric model, regions and industries within regions are linked by an input-output structure and this input-output structure disciplines how the shocks are spatially propagated.

Keywords: Tohoku earthquake, regional spillovers, industrial production, dominant region, propagation of shocks

JEL Classification: R11, R15

Suggested Citation

Dekle, Robert and Hong, Eunpyo and Xie, Wei, The Regional Spillover Effects of the Tohoku Earthquake (February 20, 2015). USC-INET Research Paper No. 15-13. Available at SSRN: https://ssrn.com/abstract=2574455 or http://dx.doi.org/10.2139/ssrn.2574455

Robert Dekle (Contact Author)

University of Southern California - Department of Economics ( email )

3620 South Vermont Ave. Kaprielian (KAP) Hall, 300
Los Angeles, CA 90089
United States
213-740-8335 (Phone)

Eunpyo Hong

Department of Economics, University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

Wei Xie

University of Southern California, Department of Economics, Students ( email )

Los Angeles, CA
United States

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