Professor Liuchun Deng, PhD

Professor Liuchun Deng, PhD
Current Position

since 12/19

Research Affiliate

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 7/18

Head of the Research Group Globalisation, Technological Progress, and Labour Market Adjustments

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 8/19

Assistant Professor

Yale-NUS College

Research Interests

  • structural change and international trade
  • economic dynamics

Liuchun Deng joined the institute as a Research Affiliate in December 2019. His research interests include international trade, economics of networks, and economic development.

Liuchun Deng holds the position of Assistant Professor at Yale-NUS College in Singapore. Prior to that, he was working at IWH.

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Professor Liuchun Deng, PhD
Professor Liuchun Deng, PhD
Mitglied - Department Structural Change and Productivity
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On Mitra's Sufficient Condition for Topological Chaos: Seventeen Years Later

Liuchun Deng M. Ali Khan

in: Economics Letters, March 2018


This letter reports an easy extension of Mitra’s “easily verifiable” sufficient condition for topological chaos in unimodal maps, and offers its application to reduced-form representations of two economic models that have figured prominently in the recent literature in economic dynamics: the check- and the M-map pertaining to the 2-sector Robinson–Solow–Srinivasan (RSS) and Matsuyama models respectively. A consideration of the iterates of these maps establishes the complementarity of the useful 2001 condition with the 1982 (LMPY) theorem of Li–Misiurewicz–Pianigiani–Yorke when supplemented by a geometric construction elaborated in Khan–Piazza (2011).

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On Growing through Cycles: Matsuyama's M-map and Li-Yorke Chaos

Liuchun Deng M. Ali Khan

in: Journal of Mathematical Economics, January 2018


Recent work of Gardini et al. (2008), building on earlier work of Mitra (2001) and Mukherji (2005), considers the so-called M-map that generates a dynamical system underlying Matsuyama’s (1999) endogenous growth model. We offer proofs of the fact that there do not exist 3- or 5-period cycles in the M-map, and an example (a numerical proof) of the existence of a 7-period cycle. We use the latter, and a construction in Khan and Piazza (2011), to identify a range of parameter values of the M-map that guarantee the existence of cycles of all periods, except 3 and 5. Our argumentation relies on, and reports, the first four iterations of the M-map that may have independent interest.

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Criminal Network Formation and Optimal Detection Policy: The Role of Cascade of Detection

Liuchun Deng Yufeng Sun

in: Journal of Economic Behavior and Organization, September 2017


This paper investigates the effect of cascade of detection, how detection of a criminal triggers detection of his network neighbors, on criminal network formation. We develop a model in which criminals choose both links and actions. We show that the degree of cascade of detection plays an important role in shaping equilibrium criminal networks. Surprisingly, greater cascade of detection could reduce ex ante social welfare. In particular, we prove that full cascade of detection yields a weakly denser criminal network than that under partial cascade of detection. We further characterize the optimal allocation of the detection resource and demonstrate that it should be highly asymmetric among ex ante identical agents.

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Working Papers


Robots, Occupations, and Worker Age: A Production-unit Analysis of Employment

Liuchun Deng Steffen Müller Verena Plümpe Jens Stegmaier

in: IWH Discussion Papers, No. 5, 2023


We analyse the impact of robot adoption on employment composition using novel micro data on robot use in German manufacturing plants linked with social security records and data on job tasks. Our task-based model predicts more favourable employment effects for the least routine-task intensive occupations and for young workers, with the latter being better at adapting to change. An event-study analysis of robot adoption confirms both predictions. We do not find adverse employment effects for any occupational or age group, but churning among low-skilled workers rises sharply. We conclude that the displacement effect of robots is occupation biased but age neutral, whereas the reinstatement effect is age biased and benefits young workers most.

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Robot Adoption at German Plants

Liuchun Deng Verena Plümpe Jens Stegmaier

in: IWH Discussion Papers, No. 19, 2020


Using a newly collected dataset of robot use at the plant level from 2014 to 2018, we provide the first microscopic portrait of robotisation in Germany and study the potential determinants of robot adoption. Our descriptive analysis uncovers five stylised facts concerning both extensive and, perhaps more importantly, intensive margin of plant-level robot use: (1) Robot use is relatively rare with only 1.55% German plants using robots in 2018. (2) The distribution of robots is highly skewed. (3) New robot adopters contribute substantially to the recent robotisation. (4) Robot users are exceptional along several dimensions of plant-level characteristics. (5) Heterogeneity in robot types matters. Our regression results further suggest plant size, low-skilled labour share, and exporter status to have strong and positive effect on future probability of robot adoption. Manufacturing plants impacted by the introduction of minimum wage in 2015 are also more likely to adopt robots. However, controlling for plant size, we find that plant-level productivity has no, if not negative, impact on robot adoption.

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