Welcome! I am a PhD candidate in Economics at Duke University.
My research interests lie in the intersections of international trade and industrial organization. I combine large-scale micro-data with structural models to study firm behaviors, with a special focus on innovation and the impact of industrial, trade, and environmental policies.
Here is my Curriculum Vitae. You can contact me via weiting.miao@duke.edu.
I am on the 2024-25 job market.
Technology Rivalry and Resilience Under Trade Disruptions: The Case of Semiconductor Foundries
[Draft]
Abstract:
This paper studies the impact of industrial policies on technology competition and consumer welfare amid rising global trade disruption risks. Distilling key empirical features from novel data on the semiconductor foundry industry, I develop and estimate a dynamic oligopoly model that integrates step-by-step innovation, trade disruption risk, and industrial policies. While distortions from market power and technological externalities justify subsidies, their optimal levels depend on the magnitude of trade disruption risk: when the risk is low, the optimal subsidy rate remains low, as the welfare benefits are distributed globally, but the costs are borne exclusively by the subsidizing government. My quantitative model shows that a 35% trade disruption risk makes the 25% investment subsidy under the U.S. CHIPS Act optimal, resulting in a 6% welfare improvement for the U.S. The paper also analyzes the CHIPS Act's restrictions on investments in rival countries, intended to secure technological leadership against their firms. Its efficacy depends on the strength of technology spillover restrictions and the scale of the rival home market secured for rival firms.
The Geographical Leakage of Environmental Regulation: Evidence from the Clean Air Act [Draft] How large is geographic leakage resulting from place-based environmental policy? We study this question in the context of the landmark US Clean Air Act Amendments. Our paper makes three primary contributions. First, using modern event-study techniques and confidential data from the US Census Bureau, we revisit seminal results that characterize the effects of this environmental regulation on directly regulated plants and industries. Second, we extend prior work by quantifying leakage to unregulated regions and identifying multi-unit firms as a key pathway through which this leakage occurs. Our third contribution is to combine these new results with an industry equilibrium model that captures both within-firm and cross-location leakage. The model quantifies the economic cost of the regulation, the contribution of multi-unit firms to leakage across regions and the role of the Clean Air Act in redistributing industrial production across the US.
R&D, Innovation, and Productivity What are the returns of private and public funding of research and development expenses in terms of patents and productivity? We compile a database of patents that were generated with funding from government agencies and are in the process of linking it to firm-level R&D expenditures and productivity data from the U.S. Census Bureau. This will allow us to analyze the “patent yield” of public versus private R&D funding and evaluate the impact of these funding sources on firm-level innovation and revenue productivity.
Two Tales of Innovation and Nascent Acquisitions This paper examines the effect of nascent acquisitions on innovation across industries under general equilibrium conditions. I develop a model that incorporates firm entry decisions, R&D investment, acquisitions, and post-acquisition development, emphasizing the differences in R&D costs and success rates between incumbents and new entrants. Findings reveal that M&As have varied effects: they promote entry and innovation in high-barrier industries like pharmaceuticals but may hinder innovation in low-barrier industries like software. Empirical data supports these conclusions, showing a positive correlation between firm entry and M&A volume in the pharmaceutical industry but not in the software industry.
Labor Share Decline in Chinese Industrial Sector The aggregate labor share in China's industrial sector rapidly declined from 24.7% in 1998 to 16.3% in 2007, with reductions across almost all industries and regions, primarily occurring within industries rather than through reallocation. Comparing state-owned enterprises (SOEs) and private enterprises (PEs) shows SOEs initially had higher labor shares due to overstaffing. SOE reforms led to convergence in labor shares between SOEs and PEs by 2007. The dramatic reduction in SOE labor share was mainly due to the elimination of small SOEs and layoffs.
TA for Macroeconomic Analysis II (Ph.D. core), 2021 Spring, Duke University
Working Papers
with Mark Curtis, Felix Samy Soliman, Juan Carlos Suarez Serrato, and Daniel Yi Xu
Abstract
Work in Progress
with Matthias Kehrig, and Daniel Yi Xu
Abstract
[Preliminary draft available upon request]
Abstract
[Preliminary draft available upon request]
Abstract
Teaching
TA for Macroeconomic Analysis I (Ph.D. core), 2020 Fall, Duke University