Evidence from a UK supermarket chain
AbstractWe use unique store-specific data for a major UK supermarket chain to estimate the impact of planning, which restricts both the size and location of stores, on store output. Using the quasi-natural experiment of the variation in planning policies between England and other UK countries and a difference-in-difference approach, we isolate the impact of Town Centre First (TCF) policies. We find that space contributes directly to the productivity of stores and planning policies in England directly reduce output both by reducing store sizes and forcing stores onto less productive sites. Our results suggest that since the late 1980s planning policies have imposed a loss of total output of at least 18.3 to 24.9%. This is equivalent to more than a ‘lost decade’ of output growth in a major sector generated directly by government policy.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2012/15.
Length: 49 pages
Date of creation: 2012
Date of revision:
Land use regulation; regulatory costs; firm productivity; retail;
Find related papers by JEL classification:
- D2 - Microeconomics - - Production and Organizations
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Other Production and Pricing Analysis
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-05-15 (Agricultural Economics)
- NEP-ALL-2012-05-15 (All new papers)
- NEP-EFF-2012-05-15 (Efficiency & Productivity)
- NEP-URE-2012-05-15 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David R. Bell & Christian A.L. Hilber, 2004. "An Empirical Test of the Theory of Sales: Do Household Storage Costs Affect Consumer and Store Behavior?," Working Papers 05-23, Utrecht School of Economics.
- Haskel, Jonathan & Sadun, Raffaella, 2009.
"Regulation and UK Retailing Productivity: Evidence from Micro Data,"
CEPR Discussion Papers
7140, C.E.P.R. Discussion Papers.
- Jonathan Haskel & Raffaella Sadun, 2012. "Regulation and UK Retailing Productivity: Evidence from Microdata," Economica, London School of Economics and Political Science, vol. 79(315), pages 425-448, 07.
- Haskel, Jonathan & Sadun, Raffaella, 2009. "Regulation and UK Retailing Productivity: Evidence from Micro Data," IZA Discussion Papers 4028, Institute for the Study of Labor (IZA).
- Schivardi, Fabiano & Viviano, Eliana, 2008.
"Entry Barriers in Retail Trade,"
CEPR Discussion Papers
6637, C.E.P.R. Discussion Papers.
- Fabiano Schivardi & Eliana Viviano, 2008. "Entry Barriers in Retail Trade," EIEF Working Papers Series 0814, Einaudi Institute for Economics and Finance (EIEF), revised Jul 2008.
- F. Schivardi & E. Viviano, 2009. "Entry Barriers in Retail Trade," Working Paper CRENoS 200908, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Fabiano Schivardi & Eliana Viviano, 2010. "Entry Barriers in Retail Trade," Working Papers CELEG 1003, Dipartimento di Economia e Finanza, LUISS Guido Carli.
- Cheshire, Paul & Hilber, Christian A. L., 2007.
"Office Space Supply Restrictions in Britain: The Political Economy of Market Revenge,"
5435, University Library of Munich, Germany.
- Paul C. Cheshire & Christian A.L. Hilber, 2008. "Office Space Supply Restrictions in Britain: The Political Economy of Market Revenge," Economic Journal, Royal Economic Society, vol. 118(529), pages F185-F221, 06.
- Paul Cheshire & Christian A. L. Hilber & Ioannis Kaplanis, 2011. "Evaluating the Effects of Planning Policies on the Retail Sector: Or do Town Centre First Policies Deliver the Goods?," SERC Discussion Papers 0066, Spatial Economics Research Centre, LSE.
- Griffith, Rachel & Harmgart, Heike, 2008. "Supermarkets and Planning Regulation," CEPR Discussion Papers 6713, C.E.P.R. Discussion Papers.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Yes, planning law is red tape that we want to get rid of
by tim in The Pin Factory Blog on 2012-05-27 06:00:30
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