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Land Use Regulation and Productivity - Land Matters: Evidence from a UK Supermarket Chain

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  • Paul Cheshire
  • Christian A. L. Hilber
  • Ioannis Kaplanis

Abstract

We use store-specific data for a UK supermarket chain to estimate the impact of planning on store output. Exploiting the variation in policies between England and other UK countries, we isolate the impact of Town Centre First (TCF) policies introduced in England. We find they directly reduced output by forcing stores onto less productive sites. We estimate TCF policies imposed a loss of output of 32 percent on a representative store opening after their rigorous implementation in 1996. Additionally, we show that, household numbers constant, more restrictive local authorities have fewer stores and lower chain sales within their areas.

Suggested Citation

  • Paul Cheshire & Christian A. L. Hilber & Ioannis Kaplanis, 2013. "Land Use Regulation and Productivity - Land Matters: Evidence from a UK Supermarket Chain," SERC Discussion Papers 0138, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:sercdp:0138
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    References listed on IDEAS

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    More about this item

    Keywords

    retail productivity; land use regulation; Town Centre First; local regulatory constraints;
    All these keywords.

    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, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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