Please use this identifier to cite or link to this item: https://doi.org/10.1257/app.20190416
Title: Communication Infrastructure and Stabilizing Food Prices: Evidence from the Telegraph Network in China.
Authors: Gao Pei 
Yu-Hsiang Lei 
Issue Date: 1-Jul-2021
Publisher: American Economic Association
Citation: Gao Pei, Yu-Hsiang Lei (2021-07-01). Communication Infrastructure and Stabilizing Food Prices: Evidence from the Telegraph Network in China.. American Economic Journal: Applied Economics 13 (3) : 65-101. ScholarBank@NUS Repository. https://doi.org/10.1257/app.20190416
Abstract: This paper exploits a unique historical setting - the expansion of the telegraph network in nineteenth-century China when railroads were limited - to examine whether the reduction of information frictions stabilizes grain prices. Employing a difference-in-difference (DID) strategy, we find that the telegraph access (i) reduced both the magnitude and the incidence of extreme prices; (ii) mitigated price responses to local weather shocks but increased the responsiveness to shocks in other telegraph-connected regions; (iii) affected the price volatility in a mean-reverting pattern; i.e., volatility rose in previously price-stable regions, and volatility decreased in price-unstable regions. (JEL D83, L96, N55, N75, O13, O18, Q11)
Source Title: American Economic Journal: Applied Economics
URI: https://scholarbank.nus.edu.sg/handle/10635/229863
DOI: 10.1257/app.20190416
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