Two-way Fixed-effects Research Articles

Does Experience of Vaccination Improve Vaccine Confidence and Trust? Policy Feedback Effects of Mass COVID-19 Vaccination in the United States.

Policy feedback research has demonstrated that a highly tangible policy that shapes public attitudes through direct and day-to-day experiences often reshapes public opinion, with the effect of generating supportive or skeptical constituencies that determine the sustainability of future programs. This paper examines the impact of mass vaccination efforts on attitudes towards vaccines in a context of high vaccine hesitancy in the U.S. We analyzed 73,092 survey responses from 9,229 participants in the longitudinal data from the Understanding America Study project, covering December 2020 to July 2023. Using two-way fixed-effects ordinary least squares regression and ordinal logistic regression, we estimated the changes in attitudes towards vaccines, including trust in vaccine manufacturing and approval processes, following COVID-19 vaccinations. COVID-19 vaccination was associated with improved perceptions of vaccine effectiveness and social benefits and reduced mistrust in vaccine-related processes. However, it did not significantly alleviate concerns regarding vaccine side effects and illness. The strongest effects were observed among respondents initially hesitant but who eventually vaccinated. The experience of COVID-19 vaccination generally improved attitudes and confidence in COVID-19 vaccines among the U.S. public, particularly among vaccine-hesitant people. These effects could have positive impacts on future immunization programs by mitigating vaccine hesitancy.

Heterogeneous Impacts of Traditional and Modern Information Channels on Farmers’ Green Production: Evidence from China

Efficient agricultural input is crucial for agricultural green production and sustainable development. The swift evolution of information and communication technologies has diversified the avenues through which farmers access information. However, how different information channels affect farmers’ production input remain poorly understood. Leveraging a two-way fixed-effects model and the Karlson-–Holm–Breen (KHB) method, this study delves into the mechanisms underlying the influence of both traditional and modern information channels on farmers’ inputs of seeds, chemical fertilizers, and pesticides (SCFP) based on over 15,000 sample of Chinese farmers. The findings reveal the following: (1) modern information channels significantly decrease farmers’ SCFP input, whereas traditional channels exhibit the opposite effect; (2) environmental pollution perception acts as a mediator in the influence of both traditional and modern information channels on farmers’ SCFP input; (3) traditional information channels significantly promote farmers’ SCFP input in the grain production and marketing balance areas, and modern information channels inhibit farmers’ SCFP input in major grain-producing areas; and (4) traditional and modern information channels have an impact on farmers’ SCFP input in the western region, but not in the central region. To promote sustainable agricultural development, government departments should enhance rural Internet access, diversify information sources, advocate for eco-farming, ensure regional digital equity, and enhance green agri-tech promotion.

From Tradition to Innovation: The Role of Culture Tourism in Transforming Chinese Agriculture

After the merger of China’s Ministry of Culture and the National Tourism Administration into the Ministry of Culture and Tourism in 2018, there was a strong push to advance the strategy of culture–tourism integration, which has shown significant effects on the economy and society. Building on this success, the Chinese government proposed the strategy of agriculture–culture–tourism integration in 2023. However, its impact on the agricultural sector remains unclear. This study employs field theory to explain the impact of culture–tourism integration on the agricultural sector. Drawing from the relevant literature, we construct and statistically analyze the Culture–Tourism Coupling Coordination Degree (CTCCD). Utilizing provincial panel data from China from 2000 to 2022, we employ two-way fixed-effects panel regression to empirically estimate and analyze the effects of the CTCCD on the agricultural GDP, Total Factor Productivity (TFP), and various aspects of crop farming. Our findings reveal several key insights: (i) the CTCCD exhibits a significant negative impact on both agricultural GDP and TFP; (ii) the CTCCD negatively affects the proportion of crop farming within the agricultural sector, suggesting that culture–tourism integration results in weaker development of crop farming compared to forestry, animal husbandry, and fisheries; (iii) the CTCCD demonstrates significant negative effects on the sown area, yield per unit area, and total production of food crops, while positively influencing the per capita income of agricultural workers. These empirical results highlight the complex relationship between culture–tourism integration and agricultural development. Our analysis provides quantitative evidence of the trade-offs involved in pursuing integrated development strategies, adding to the existing research on rural development. The findings indicate that promoting agriculture–culture–tourism integration should be balanced with efforts to accelerate agricultural technological progress.

Casting a sustainable future: a study on dynamic prediction and influencing factors of economic resilience in fisheries management

Marine fisheries are a critical component of the marine economy. Examining the changes in the economic resilience of marine fisheries allows for identifying potential development risks and supports informed decision-making to optimize growth patterns and mitigate risks. This study applied the CRITIC-based combined weights model to calculate China’s Marine Fisheries Economic Resilience (MFER). It investigated the temporal and spatial evolution of MFER and analyzed the influencing factors using the Geographical Detector and a Two-way fixed-effects model. Furthermore, the future development trends of MFER were predicted using the Markov chain. The results show that the overall MFER in China’s coastal provinces increased steadily from 2001 to 2020. Second, MFER exhibits a clear pattern, with low-value regions improving and high-value areas shifting toward medium- and low-value provinces. Fourth, the trajectory of the MFER center is moving from north to south, with high-value regions expanding in the same direction. Fourth, factors such as EDL, TEC, SPE, and SYS positively impact MFER, while OPE has a negative effect. Finally, the results of the Markov chain indicate that the current development state of MFER is relatively stable, with evidence of club convergence. However, the probability of maintaining the current development level is gradually decreasing. Based on these findings, provide suggestions for the preservation of marine economic security.

Forging a path to sustainability: the impact of Fintech on corporate ESG performance

Emerging development of Fintech has raised widespread attention to its important role in shaping corporate ESG performance despite little in-depth research. We study the impact of Fintech on corporate ESG performance using a comprehensive dataset covering major China’s firms over the past decade. The Fintech development at the city level is measured via an entropy method based on information gathering from firms and households. Drawn on a panel data estimation with two-way fixed effects, our findings show that corporate ESG performance improves with Fintech development. Promotion of green innovation, mitigation of financial mismatch, and environmental uncertainty are found to serve as the three mediating channels that drive the relationship between Fintech and corporate ESG performance. The positive impact of Fintech is shown to be more pronounced in firms with non-high-tech, non-high-polluting, and labor-intensive features. Further analysis indicates that Fintech strengthens in the enterprises’ green value through perspectives of green total factor productivity and green investment.

Environmental pollution, trade openness and the health of middle-aged and elderly people: an analysis of threshold effect based on data from 111 prefecture-level cities in China

BackgroundEnvironmental pollution seriously endangers people’s physical and mental health, especially the health of middle-aged and elderly people. Environmental pollution, trade openness, and population health are interconnected. Environmental pollution may have a nonlinear impact on health, and the impact of trade openness on the health effects of environmental pollution may not be a simple strengthening or weakening effect. However, few studies have used threshold effects model to explore the nonlinear mechanisms of environmental pollution’s impact on health in China. As a result, this study incorporates trade openness into the research framework on the health effects of environmental pollution, aiming to study the mechanism of environmental pollution on health.MethodsUsing the China Health and Retirement Longitudinal Study (CHARLS) data from 2013 to 2020 and the data of 111 prefecture-level cities in China, we combine two-way fixed-effects models and threshold models to explore the effects of environmental pollution on the health of middle-aged and elderly people and the role of trade openness in the path of environmental pollution affecting health.ResultsEnvironmental pollution impairs the health of middle-aged and elderly people, and there is a single threshold effect and regional heterogeneity in this negative impact. Trade openness has the effect of first weakening and then strengthening in the inhibitory effect of environmental pollution on health.ConclusionThe negative impact of environmental pollution on health has regional heterogeneity, and there is a nonlinear relationship between environmental pollution and the health of middle-aged and elderly people. The health effect of environmental pollution is mainly long-term effect, and trade openness has a threshold effect on the impact of environmental pollution on health. Therefore, instead of adopting a one-size-fits-all policy, environmental and economic policies should be customized according to the degree of environmental pollution, trade openness, and regional variations, so as to safeguard the health of middle-aged and elderly individuals through effective environmental governance.

Higher Education Investment, Human Capital Level, and High-Quality Economic Development: Evidence from Chinese Provincial Data

While extensive research has examined economic growth in China, the complex relationship between knowledge-based inputs and comprehensive development remains poorly understood, particularly at the provincial level. Previous studies have largely focused on traditional economic indicators, overlooking how education investment and human capital collectively shape multidimensional development outcomes across China's diverse regions. To address this gap, we construct a novel development index incorporating innovation, sustainability, and social progress metrics, analyzing panel data from 31 Chinese provinces (2000-2020) through two-way fixed effects models with instrumental variables. Our findings reveal that higher education investment significantly enhances comprehensive development, with this effect amplified in regions with greater human capital accumulation. Notably, regional heterogeneity analysis demonstrates stronger investment effectiveness in eastern provinces compared to central regions, while western provinces show no significant relationship. These results underscore the importance of regionally differentiated approaches to educational investment and human capital development, offering valuable insights for policymakers seeking to promote balanced growth across China's economically diverse landscape.

Changes in Dental Care Use Following Marital Status Change in the Health and Retirement Study.

Previous studies have indicated that married people are generally healthier than unmarried people, with lower mortality rates. Most work in this area has employed cross-sectional data, and few studies have examined change in marital status from married to unmarried as a potential social ecological determinant of dental health behavior. Here we used longitudinal data to examine change in dental behavior over time following marital status change, and to explore whether self-reported gender may play a modifying role in any behavioral change. Employing panel data from the Healthy Retirement Study (1996-2018) to follow all individuals who entered the study in married/partnered status, and using both two-way fixed effects and group-time average difference-in-difference models, we analyzed the association between any change in marital status and dental care use, compared to individuals who remained married. All analyses were stratified by gender. Both types of difference-in-difference analyses indicated that both widowhood and divorce were associated with a decrease in dental care use in both genders. Divorced men saw the greatest decrease in dental care use. We found gender had a moderating effect on strength of association in all analyses. This research suggests that any change in marital status from married to unmarried has a detrimental effect on dental health behavior for both genders. Future research might investigate other potential barriers to dental care access these populations might face, in order to develop effective interventions.

Capital Structure and Enterprise Market Value: An Empirical Analysis Based on S&P 500 Companies

Abstract: This study explores the impact of capital structure on enterprise market value, specifically examining the influence of the debt ratio on the market valuation of S&P 500 companies. Capital structure decisions are crucial for corporate managers and investors, as they significantly affect firm performance, risk, and market perception. The research is motivated by the need to understand how financial leverage influences market valuation, particularly in large, publicly traded companies. Utilizing two-way fixed effect panel data models spanning from 2020 to 2023, we find significant evidence that higher leverage is associated with an increase in market valuation, offering a comprehensive view of the factors that influence corporate market values. Additionally, the study reveals that the impact of leverage varies across company sizes and examines sector-specific effects and the role of long-term debt. The findings provide key insights for investors and corporate managers regarding the impact of financial structure on company valuation, emphasizing the importance of optimizing capital structure to enhance firm value and strategic decision-making.

Rural Road Infrastructure and Women’s Empowerment in India

Abstract The paper examines the impact of a rural road construction program in India on a range of outcomes that capture women’s empowerment comprehensively. While spatial integration can ease mobility constraints and provide women with increased education and employment opportunities, the extent of benefits might be limited by underlying gender norms. The paper identifies the impact of the policy by exploiting the program rule that assigned roads based on the village population in a two-way fixed effect framework. The results suggest that the policy reduces mobility restrictions faced by women and improves norms around domestic violence and intra-household agency. It also finds a positive impact of the policy on female education; however, there is limited impact on female employment. Additionally, the study documents gendered impact of the policy—men benefit more in terms of employment than women. The paper offers important policy prescription on how investment in rural roads can affect women’s lives.

Study on Regional Economic Effect of "West-East Power Transmission"

There is a certain mismatch between China's energy distribution and economic development. In this regard, the "West-East Power Transmission" project has optimized the allocation of China's power resources by exploiting the energy potential of the west. Based on the relevant economic data of 31 provincial administrative units in China from 1995 to 2018, combined with theoretical mechanism analysis, this paper hopes to explore the regional economic effect of "west point to East transmission" by designing a dynamic two-way fixed effect DID model divided into input and output areas. It is found that the policy of "power transmission from west to East" has no significant promoting effect on the whole, but has significant promoting effect on the economy of the import area in the medium and long term. In the input area, it mainly improves the output value of the tertiary industry and promotes the optimization of industrial structure. In addition, the heterogeneity robust estimators of de Chaisemartin and D 'Haultfoeuille were also used to estimate the policy effect at the input site, and the results were similar to those of dynamic TWFE.

The Impact of Education Level on Real Estate Asset Allocation

As an important asset class, the allocation decision of real estate is of great significance to the wealth accumulation of individuals and families. This paper builds a theoretical framework based on the theoretical perspective of human capital, takes the CHFS database in 2015,2017 and 2019 as the benchmark, and constructs the Probit model, two-way fixed effect model and intermediary effect model to carry out empirical testing, revealing the causal relationship and mechanism between education level and real estate asset allocation. The results show that the education level significantly increases the individual real estate asset allocation, and this causality is still significantly established under multiple robustness tests. Financial information attention and financial knowledge play an important intermediary role in this process. In addition, the impact of educational level on real estate asset allocation was more obvious in the urban sample than in the rural groups. This study not only enriches the theoretical basis of relevant fields, but also provides a scientific basis for policy makers, which helps to optimize the allocation of resources in the real estate market and promote the sustainable economic development.

How does audit digitalization stimulate corporate green innovation? The mediating role of R&D investment

PurposeThis paper aims to investigate how digitalization empowers government auditing with technical power to serve national governance better.Design/methodology/approachThis study measures the audit digitalization (AD) index by textual analysis method and matches the provincial AD index with the Chinese listed firm’s data from 2011 to 2019. The two-way fixed effect regression is used to explore the nexus of audit digitalization and corporate green innovation.FindingsThe empirical results demonstrate that government audit digitalization stimulates corporate green innovation, especially for substantive green innovation. Research and development expenditures on personnel and capital are influential mediators and are increased by audit digitalization. The heterogeneity analysis indicates the anti-driving effect for fewer audit informatization expenditures or lower environmental audit coverage, and the incentive effect for state-owned enterprises or firms with corporate social responsibility reports.Originality/valueThe incremental contribution lies in recognizing the progress of government audit digitalization and its role from digital to environmental governance, which extends digital capabilities and digital expertise into the government audit view. Based on textual analysis, a reliable dictionary of audit digitalization is built by machine-learning methods. Then, the authors confirm the effectiveness of audit digitalization, especially when other forms of digitalization fail to promote substantive green innovation. This study also attests to the anti-driving and incentive effect from the external governance perspective. The authors’ findings have implications for digital ecological civilization.

Effect of a small increase in off-premises trading hours on alcohol sales in Norway: A stepped-wedge cluster-randomized controlled trial.

Evidence of the effect of limiting off-premises alcohol trading hours is still scarce. This study tested the effect of a small extension in trading hours on alcohol sales in alcohol monopoly outlets in Norway. The extension of trading hours was implemented within a stepped-wedge cluster-randomized trial design. Eligible state monopoly outlets (n = 229) were clustered into trade districts (n = 62), which were block-randomized to one of three sequences regarding date of implementation: 1 September 2020 (n = 21 districts, 82 outlets), 1 December 2020 (n = 21 districts, 73 outlets) and 1 March 2021 (n = 20 districts, 74 outlets). Outcomes were followed-up for a 1-year period. Study participants were state monopoly outlets in urban and rural trade districts in all parts of Norway. Monthly alcohol sales in litres of pure alcohol per trade district and per outlet were measured from March 2020 to March 2022 (primary outcome). We applied a linear mixed-effect model with two-way fixed effects within a difference-in-difference framework. As a robustness check we considered the effects of cross-border trade and effects in subgroups of outlets. Trading hours in monopoly outlets were extended by 1 hour on Saturdays. The extension was permanent. Pre-intervention periods and not-yet-treated units served as control conditions. We did not find a statistically significant effect of the small extension in trading hours on monthly alcohol sales (i) per trade district [average treatment effect: -185.5litres, 95% confidence interval (CI) = -1159.9, 788.9] and (ii) per outlet (-35.3litres, 95% CI = -142.1, 72.0). These findings were consistent across estimation methods and model specifications. There is no clear evidence that a small extension in off-premises trading hours affected alcohol sales in monopoly outlets in Norway.

Can the digital economy contribute to rural revitalization? A case of from China?

This study establishes a multi-dimensional evaluation index system for measuring digital economy and rural revitalization. It explores the impact of digital economy on China's rural revitalization and its mechanism using dynamic balanced panel data of 30 provinces and cities in China from 2012 to 2020 and adopting two-way fixed effect and mediated effect models. The results reveal that digital economy promotes rural revitalization in China; however, differences exist in its impact on industrial prosperity, ecological livability, civilized rural customs, effective governance, and affluent living under rural revitalization. Heterogeneity analysis shows that the impact of digital economy on rural revitalization is more pronounced in eastern China, with high levels of new urbanization and areas for big-data experimentation. In addition, this thesis verifies that technological innovation and human capital are two important transmission paths through which digital economy affects rural revitalization in China. The conclusions provide theoretical guidance and practical support for China and other developing countries to vigorously develop their digital economies and comprehensively revitalize the countryside.

How educational inequality affects family multichild behavior—evidence from super high schools

In a context characterized by the dual issues of educational inequality and problems with fertility, the internal relationship between these two factors requires further in-depth exploration. On the basis of data drawn from the China Family Panel Studies (CFPS) from 2010 to 2018, this paper investigates whether “super high schools” in cities represent a form of educational inequality, uses a combination of a two-way fixed effect model with the instrumental variable method to discuss the influence of this situation on family fertility and the corresponding transmission mechanism, develops a proportional risk regression model, and expands our understanding of the influence of educational inequality on the second-child birth interval. This study reveals that educational inequality significantly suppresses the number of family births and that the paths of action associated with this effect include both the explicit and implicit costs of education. The inhibitory effect of educational inequality on the number of family births varies according to urban grade, urban or rural classification, and the education levels attained by women. In addition to decreasing the number of family births, educational inequality increases the second-child birth interval. This paper not only enriches related research on family multichild behavior but also provides an educational reference for attempts to address the issue of continuously low fertility rates in China and establish a connection between population and educational economics.

Quantifying the economy-wide employment effects of coal-fired power plants: Two different cases China and the United States

Ensuring a swift transition from coal to clean energy is essential for capping global temperature increases at 1.5 °C, but it poses significant economic and social challenges in coal-dependent regions. This paper examines the economy-wide employment impacts resulting from the activities of coal-fired power plants in China and the United States, the world's largest coal consumers. By analyzing observational data on the different stages of coal power, including both expansion and reduction in the two countries, we aim to derive insights that can inform a more effective and just transition during the phase-out of coal power. We leveraged unique periods post-2010 when China was predominantly opening coal plants while the US was closing them, identifying the economy-wide employment impacts at the county level. By using both two-way fixed effects and spatial econometric models for over 10 years of panel data, covering 2875 in China and 3233 counties in the US, we addressed spillover effects and ensured robust and comprehensive results. Our findings revealed that in China, coal plant deployment increased employment both locally and in the neighboring counties. In the U.S., our findings indicate that before 2015, closing coal plants generally had a negative impact on jobs. However, after 2015, when the U.S. introduced new federal and state-level transition policies, the impact on employment became positive. While it is hard to prove these policies directly facilitate the just transition, our findings demonstrate that they do not hinder the employment aspect of a just transition focused on coal power generation at a regional scale.

The Impact of Air Pollution Risk on the Sustainability of Crop Insurance Losses

Climate change poses significant risks to natural and economic environments, particularly through its interaction with air pollution. As agriculture is vital for national production, and crop insurance supports social security, it is crucial to examine how air pollution affects crop insurance. Here, we quantify the impact of air quality on crop insurance claims from an actuarial perspective and evaluate the implications for the industry. Utilizing claims data from the U.S., we explore the potential of particulate matter (PM2.5) as a predictor of insurance claims, building on literature that highlights its economic damage to crops. Through the application of a generalized additive model (GAM) and extreme gradient boosting, we found that PM2.5 is indeed a factor influencing crop insurance indemnity in both models, with the GAM demonstrating superior predictive performance. Furthermore, we employed Bai and Perron breakpoint analysis to elucidate the relationship between PM2.5 levels and crop insurance claims over time, alongside two-way fixed effects models to investigate its correlation with various crop types. Our findings highlight the need for crop insurance managers to integrate air quality considerations into their risk processes to ensure sustainability of the industry and pricing strategy in the face of evolving environmental challenges.

Temporal and spatial convergence: the major depressive disorder burden attributed to intimate partner violence against women

ABSTRACT Background: There is a strong causal relationship between intimate partner violence and major depressive disorder, which partly endangers women's safety across the life course and potentially affects the development of future generations. The international community has placed a high priority on addressing the intimate partner violence and the resulting burden of mental illness. Data collection needs to be captured across the temporal trend and spatial distribution for major depressive disorder attributed to intimate partner violence, to reflect the priorities and expectations of survivors. Method: This research obtained raw disability-adjusted life years (DALYs) information for major depressive disorder attributed to intimate partner violence from the Global Burden of Disease 2019. Using estimated annual percentage change and two-way fixed effects models, a secondary spatio-temporal analysis of the age-standardized DALYs rate from 1990 to 2019 was performed. Results: In 2019, DALYs lost among women experiencing major depressive disorder (3.16 million) accounted for 37.18% of the DALYs lost worldwide due to intimate partner violence. The age-standardized DALYs rate of major depressive disorder attributed to intimate partner violence was 108.57 per 100,000. The highest was concentrated in the menopausal transition (45-55), with 133.61 per 100,000, and particularly distributed in Uganda (429.31 per 100,000). The early reproductive period (15–19) showed the increasing age-standardized DALYs rate from 1990 to 2019, which was mainly driven by Malaysia (3.73% per year). Furthermore, countries with higher initial levels of the age-standardized DALYs rate were growing faster than those with lower levels. Conclusions: The burden of major depressive disorder attributed to intimate partner violence showed biological and spatial inequality, prioritized intervention should be targeted at vulnerable stage women in their early reproductive period and menopausal transition. Combined political, socio-cultural as well as medical measures to prevent violence and treat major depressive disorder should be implemented and developed.

Veto players and gun violence in drug markets: Analysis based on field observations of eighty drug-selling spots on the Westside of Chicago

PurposeThe study analyzed whether the number of drug-selling spots has an impact on shooting incidents in drug markets on the Westside of Chicago. MethodsA theory of gun violence in drug markets was developed by building on veto players theory, and tested using a series of two-way fixed-effects Poisson regressions. The main variable of interest—drug-selling spots—comes from an original dataset comprised of eighty drug-selling spots identified through covert field observations. Controls included: the average age and average number of drug spot workers at the drug-selling spots, concentrated disadvantage, population, police anti-drug operations, and drug demand. FindingsIn support of the theory, the main statistical models and robustness tests consistently found that the larger the number of drug-selling spots in a given drug market, the higher the number of shooting incidents over time. Only the control for population remained consistently statistically significant across model specifications. ConclusionThe study contributes to the drug market literature by offering a novel theory of drug market violence, as well as a replicable way for researchers to observe drug market activity without disturbing the natural behaviors of market participants. The operationalization of drug-selling spots as sub-factions of organized criminal groups also provides a novel approach to the study of drug market violence.