{"title":"Capital as an anchor of agricultural employment: Evidence from the 1975 frost","authors":"","doi":"10.1016/j.regsciurbeco.2024.104041","DOIUrl":null,"url":null,"abstract":"<div><p>How do temporary shocks affect the spatial distribution of employment in agriculture? I investigate this question by examining the 1975 frost that damaged coffee trees in Brazil. I find that the frost persistently affected the spatial distribution of employment in agriculture. To identify the effects of the capital destruction from the frost, I compare changes in agricultural employment across local economies that had different coffee tree densities right before the frost and that were differently affected by the extreme weather. The frost resulted in a persistent decline in agricultural employment. The findings are consistent with a history versus expectations model in which fixed and specific capital (such as coffee trees) prevents multiple equilibria despite strategic complementarities in crop choice.</p></div>","PeriodicalId":48196,"journal":{"name":"Regional Science and Urban Economics","volume":null,"pages":null},"PeriodicalIF":3.5000,"publicationDate":"2024-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Regional Science and Urban Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0166046224000723","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
How do temporary shocks affect the spatial distribution of employment in agriculture? I investigate this question by examining the 1975 frost that damaged coffee trees in Brazil. I find that the frost persistently affected the spatial distribution of employment in agriculture. To identify the effects of the capital destruction from the frost, I compare changes in agricultural employment across local economies that had different coffee tree densities right before the frost and that were differently affected by the extreme weather. The frost resulted in a persistent decline in agricultural employment. The findings are consistent with a history versus expectations model in which fixed and specific capital (such as coffee trees) prevents multiple equilibria despite strategic complementarities in crop choice.
期刊介绍：
Regional Science and Urban Economics facilitates and encourages high-quality scholarship on important issues in regional and urban economics. It publishes significant contributions that are theoretical or empirical, positive or normative. It solicits original papers with a spatial dimension that can be of interest to economists. Empirical papers studying causal mechanisms are expected to propose a convincing identification strategy.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
