Three Essays in Applied Microeconomics using Spatial Data

공간자료를 활용해 북한 장소기반 정책, 학군과 주택가격, 토지이용 규제 변경의 효과를 분석한다.

This dissertation consists of three chapters in the field of applied microeconomics, utilizing geospatial data. The first chapter empirically analyzes the patterns of resource allocation following North Korea's place-based policy, using satellite data. The second chapter examines the impact of school district quality on neighboring housing prices in Seoul. Last chapter investigates the causal effects of the lifting and redesignation of Land Transaction Permit Zones on housing price fluctuations in Seoul. Chapter 1.

Resource Allocation in an Authoritarian Economy: The Impact of North Korea’s 20×10 Regional Development Policy In 2024, North Korea initiated the "Regional Development 20×10 Policy", which involves constructing new light-industry factories in 20 counties. This study empirically analyzes the effects of this policy on economic activity and resource allocation, focusing on both the targeted regions and the adjacent non-treated areas. The primary findings and implications are as follows. First, the increase in nighttime luminosity at the new factory sites following the policy implementation was accompanied by a decrease in luminosity in the surrounding hinterlands and adjacent non-treated areas.

This decline in luminosity indicates a "spatial displacement" phenomenon, where limited power resources are reallocated to specific locations. These results suggest that development policies pursued in environments with constrained total resources may incur social costs, such as energy poverty and diminished welfare for residents in neighboring areas. Furthermore, analysis of North Korea-China trade data shows no significant increase in the import of capital and intermediate goods essential for factory operations, and the import substitution effect remained negligible.

These findings suggest that the construction and operation of new factories rely on the reallocation of existing equipment and the diversion of internal resources rather than the input of new resources. Second, this study finds that North Korea’s regional development policy has led to the misallocation of resources. Heterogeneity analysis shows that the costs of resource displacement are higher in regions with poor infrastructure. These results indicate that political resource allocation under authoritarian regime may undermine national economic efficiency through the misallocation of limited resources. This study provides the following implications.

First, in regimes where the mobility of economic agents is restricted, place-based policies are less likely to achieve a net increase in social welfare for the region as a whole. Unlike market economies, environments with controlled residency prevent spatial disparities from being mitigated through migration, leading to persistent inequalities in individual welfare. Second, the improvement of visible indicators by large-scale projects can create an "optical illusion of growth" that conceals the opportunity costs incurred by surrounding areas.

Therefore, analyzing information-constrained regions requires a cautious approach that utilizes diverse indicators, such as nighttime luminosity and trade data, to conduct a multi-dimensional verification of policy effects. Chapter 2. Parental Demand for School Quality: Evidence from Apartments in Seoul In Seoul, South Korea, middle school assignment depends on residential proximity within school districts, allowing parents to increase the probability of their child attending a preferred school by living nearby. Exploiting the institutional feature, we examine whether housing prices capitalize on school quality.

Using administrative data on about half a million apartment transactions, we implement a boundary discontinuity design that compares housing prices in narrowly defined neighborhoods along the boundaries between two adjacent school districts. We find that apartment prices are higher near middle schools that had stronger high school admission outcomes in the previous year. Our findings suggest that parents place significant value on academic strength as a key aspect of school quality. Chapter 3.

Regulatory Cycles and Housing Market Responses: Direct and Spillover Effects of Land Transaction Permit Zones in Seoul This study empirically analyzes the impact of the 2025 de-designation and subsequent re-designation of the Land Transaction Permit System on apartment prices and transaction volumes in Seoul, utilizing Difference-in-Differences and event-study models. The findings are as follows: First, the de-designation led to an increase in both prices and transaction volumes, with positive spillover effects extending up to a 3km radius.

Second, during the re-designation phase, a "regulatory paradox" was observed; despite a sharp decline in transaction volume within the regulated zones, prices remained stagnant or continued to rise. This suggests that the contraction in supply outweighed the intended suppression of demand. Third, the study identifies that the mechanisms of spillover to adjacent areas vary across policy phases. During the de-designation period, demand-side psychological contagion primarily drove price increases, whereas during the re-designation period, a reduction in effective supply was the key driver of upward price pressure.

These findings underscore the necessity for policymakers to meticulously account for the "dual-effect" of regulations, which simultaneously impacts both supply and demand. Furthermore, in dense urban environments with high residential homogeneity, it is imperative to recognize that localized policy interventions can trigger extensive and unintended spillover effects across the broader market. 본 학위논문은 공간 데이터를 활용한 응용미시경제학 연구로, 총 세 개의 장으로 구성되어 있다. 제1장에서는 위성 데이터를 이용하여 북한의 장소 기반 정책에 따른 자원 배분 양상을 실증적으로 분석한다. 제2장에서는 서울시 학군의 질이 인근 주택 가격에 미치는 영향을 규명하며, 마지막으로 제3장에서는 서울시 내 토지거래허가구역의 해제 및 재지정이 주택 가격에 미치는 효과를 고찰한다. 제1장.

권위주의 경제에서의 자원 배분: 북한 ‘지방발전 20×10 정책’의 영향을 중심으로 2024년 북한은 20개 시군에 신규 경공업 공장을 건설하는 ‘지방발전 20×10 정