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Short-term Impact of Shopping-hour Deregulation: Welfare Implications and Policy Analysis

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  • Paul Lanoie
  • Georges A. Tanguay
  • Luc Vallée

Abstract

The trade-off between the short- and long-term effects of the deregulation of shopping hours must be taken into account by policy-makers when introducing new legislation. In this paper, we argue that while long-term efficiency gains can be expected from relaxed shopping hours in Canada, deregulation also involves short-term social costs and a potential short-term redistribution of social welfare among Canadians. These issues seem to have been neglected in the debates over whether the provinces should permit Sunday shopping. This paper also presents empirical evidence on the immediate aftermath of deregulation in Quebec (July 8, 1990) in order to give policy-makers in the other provinces a better understanding of the risk of consumer disenchantment following deregulation.

Suggested Citation

  • Paul Lanoie & Georges A. Tanguay & Luc Vallée, 1994. "Short-term Impact of Shopping-hour Deregulation: Welfare Implications and Policy Analysis," Canadian Public Policy, University of Toronto Press, vol. 20(2), pages 177-188, June.
    • Handle: RePEc:cpp:issued:v:20:y:1994:i:2:p:177-188
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    References listed on IDEAS

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    1. Morrison, Steven A & Newman, Robert J, 1983. "Hours of Operation Restrictions and Competition among Retail Firms," Economic Inquiry, Western Economic Association International, vol. 21(1), pages 107-114, January.
    2. Glazer, Amihai, 1981. "Advertising, Information, and Prices-A Case Study," Economic Inquiry, Western Economic Association International, vol. 19(4), pages 661-671, October.
    3. Nooteboom, Bart, 1982. "A new theory of retailing costs," European Economic Review, Elsevier, vol. 17(2), pages 163-186.
    4. Kay, J A & Morris, C N, 1987. "The Economic Efficiency of Sunday Trading Restrictions," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 113-129, December.
    5. Ferris, J Stephen, 1990. "Time, Space, and Shopping: The Regulation of Shopping Hours," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 6(1), pages 171-187, Spring.
    6. John Moorhouse, 1984. "Is Tullock correct about Sunday closing laws?," Public Choice, Springer, vol. 42(2), pages 197-203, January.
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    Cited by:

    1. Jacobsen, Joyce P. & Kooreman, Peter, 2005. "Timing constraints and the allocation of time: The effects of changing shopping hours regulations in The Netherlands," European Economic Review, Elsevier, vol. 49(1), pages 9-27, January.

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