IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-031-53684-7_11.html
   My bibliography  Save this book chapter

Causal Effect of the Shinkansen on Population Change in Japan: An Application of PSM-DID

In: Socioeconomic Impacts of High-Speed Rail Systems

Author

Listed:
  • Jingyuan Wang

    (Tokyo University of Science)

  • Shintaro Terabe

    (Tokyo University of Science)

  • Hideki Yaginuma

    (Tokyo University of Science)

  • Haruka Uno

    (Ibaraki University)

  • Yu Suzuki

    (Tokyo University of Science)

Abstract

The Shinkansen is a high-speed railway in Japan; it has been in operation since 1964 and has been used for approximately 60 years. Shinkansen has improved population mobility and communication between different regions in Japan, making it easier for people to reach different cities and areas, thereby increasing population balance and diversity. This study uses the Japanese Shinkansen as an example and empirically investigates the relationship between high-speed rail and population change. An empirical analysis using an econometric approach was conducted on 19 newly opened Shinkansen stations in Japan between 1995 and 2015, using panel data from 1995, 2000, 2005, 2010, and 2015. Specifically, we used third-level grid data from the national census and the propensity score matching and difference-in-difference (PSM-DID) method to quantitatively calculate the causal effect of the opening of the Shinkansen on the population increase or decrease in the areas surrounding the Shinkansen stations. We used propensity score matching (PSM) to mitigate self-selection bias caused by observable variables and improve comparability between the treatment and control groups. We then combined the DID (difference-in-difference) method with panel data to eliminate the endogeneity problem caused by unobservable variables and improve the robustness of the estimation results. We introduced a two-way fixed effects model (TWFE) in the DID method to control for time-fixed effects and individual-fixed effects. We controlled for individual-fixed effects by dividing them into three levels—region, prefecture, and city—thus obtaining analysis results from macroscopic to microscopic perspectives. The impact of Shinkansen stations on population change at different levels was analyzed in detail. The event study method was introduced to test the parallel trend hypothesis, the core hypothesis of DID, and the dynamic effect of the Shinkansen opening on population change was further analyzed along with the parallel trend test.

Suggested Citation

  • Jingyuan Wang & Shintaro Terabe & Hideki Yaginuma & Haruka Uno & Yu Suzuki, 2024. "Causal Effect of the Shinkansen on Population Change in Japan: An Application of PSM-DID," Springer Proceedings in Business and Economics, in: Francesca Pagliara (ed.), Socioeconomic Impacts of High-Speed Rail Systems, pages 225-251, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-53684-7_11
    DOI: 10.1007/978-3-031-53684-7_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-031-53684-7_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.