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Revealing U.S. retail industries’ functional hierarchy through demand thresholds

Author

Listed:
  • Anders Van Sandt

    (Colorado State University)

  • Craig Wesley Carpenter

    (Michigan State University)

  • Rebekka Dudensing

    (Texas A&M University)

  • Scott Loveridge

    (Michigan State University)

  • Linda Niehm

    (Iowa State University)

Abstract

We explore the structure of the US retail sector by estimating county-level demand thresholds for 11 retail industries using establishment-level data from the US Census Bureau’s Longitudinal Business Database and Integrated Longitudinal Business Database. In addition to providing accurate and precise demand threshold estimates at a highly disaggregated industry level, we also explore how location outcomes differ across employers and non-employers using Poisson and negative binomial estimations as well as their zero-inflated counterparts. Findings provide insight into the industrial organization of retail industries and suggest that important retail location determinants include retail leakages, sector interdependencies, social capital, natural assets, and other place-based factors.

Suggested Citation

  • Anders Van Sandt & Craig Wesley Carpenter & Rebekka Dudensing & Scott Loveridge & Linda Niehm, 2025. "Revealing U.S. retail industries’ functional hierarchy through demand thresholds," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 14(1), pages 1-23, December.
    • Handle: RePEc:spr:jecstr:v:14:y:2025:i:1:d:10.1186_s40008-025-00359-0
    DOI: 10.1186/s40008-025-00359-0
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    Keywords

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    JEL classification:

    • D0 - Microeconomics - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L8 - Industrial Organization - - Industry Studies: Services

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