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The Outputs of Retail Activities: Concepts, Measurement and Evidence from U.S. Census Data

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Author Info
Betancourt, Roger R
Gautschi, David A

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Abstract

The authors develop a new economic framework for the empirical analysis of retail margins. This framework formalizes the role of distribution services as outputs of retail activities. Their main results are the following: the measures of outputs of retail activities identified in the data perform as important and robust determinants of retail margins; variables that purport to capture oligopolistic features of market structure play a limited or no role in determining retail margins; quantity setting and price setting under the assumptions of profit maximization and monopolistic competition are categorically rejected by the data. The data base is information on 49 retail sectors from the 1982 U.S. Census of Retail Trades. Copyright 1993 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 75 (1993)
Issue (Month): 2 (May)
Pages: 294-301
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Handle: RePEc:tpr:restat:v:75:y:1993:i:2:p:294-301

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Web page: http://mitpress.mit.edu/journals/

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  1. Robert Inklaar & Marcel Timmer, 2008. "Accounting for growth in retail trade: an international productivity comparison," Journal of Productivity Analysis, Springer, vol. 29(1), pages 23-31, February. [Downloadable!] (restricted)
  2. Libia Santos-Requejo & Óscar González-Benito, 2000. "Economic Success Factors in Spanish Small Retail Businesses. An Analysis Based on Sector-Relative Definitions," Small Business Economics, Springer, vol. 15(3), pages 209-222, November. [Downloadable!] (restricted)
  3. Miquel Faig & Belen Jerez, 2003. "A Theory of Commerce: Competitive Search Under Private Information," Working Papers faig-02-01, University of Toronto, Department of Economics. [Downloadable!]
  4. C.J. Krizan & John Haltiwanger & Lucia Foster, 2002. "The Link Between Aggregate and Micro Productivity Growth: Evidence from Retail Trade," Working Papers 02-18, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  5. MATSUURA Toshiyuki & SUNADA Mitsuru, 2009. "Measurement of the Consumer Benefit of Competition in Retail Outlets," Discussion papers 09015, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
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