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α: calibrated so average coauthorship-adjusted count equals average raw count
We show evidence of how political geography directly shapes real economic outcomes by studying the spatial impact on Beijing’s restaurant sector of China’s 2012 anti-corruption campaign, which placed strict limits on lavish spending by public officials. Restaurants located closer to government offices experienced a relative decline in consumer demand. The post-campaign distribution of establishments was less spatially concentrated around government offices and had a smaller presence of high-end restaurants than before the campaign. Our results underscore the role of political geography as a potent, spatially concentrated driver of demand and its influence on the configuration of economic activities.