Neighborhood Retail Amenities and Shopping Trip Behavior

We analyze the impact of newly developed malls on the shopping trip behavior of nearby residents. Using the difference-in-differences approach and big data from a major taxi company in Singapore, we find that households residing within 800 meters from the new mall are significantly less likely to take taxis to other shopping destinations after the mall opening. This travel behavior change encompasses both intensive (share of the number of shopping trips out of total taxi trips originated from each residential building) and extensive (share of shopping trip distance out of total taxi trip distance) margin responses. We further demonstrate that the magnitude of this shopping trip reduction is more significant during PM peak hours and for residential buildings that are located farther from the Central Business District and in less self-sufficient communities. Our research provides suggestive evidence on the significant role of neighborhood retail amenities to the change in mode and destination choices for shopping. An important policy implication is that improving self-sufficiency for suburban neighborhoods could not only enhance the wellbeing of their residents but also increase aggregate welfare by reducing the level of congestion.