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A Dynamic Analysis of Entry Regulations and Productivity in Retail Trade

  • Maican, Florin


    (Research Institute of Industrial Economics (IFN))

  • Orth, Matilda


    (Research Institute of Industrial Economics (IFN))

Quantifying possible inefficiencies stemming from regulation is important to both policymakers and researchers. We use a dynamic structural model to evaluate the role of local market entry regulations in the productivity of retail trade. Our model is flexible with respect to how local market regulations influence store productivity and controls for demand in local markets. We combine the structural approach with detailed data on all stores in the Swedish retail industry. The results show that more liberal entry regulations increase future productivity and that the increase in productivity is larger for small stores and small markets than for large stores and large markets.

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 939.

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Length: 82 pages
Date of creation: 14 Nov 2012
Date of revision: 12 Apr 2014
Handle: RePEc:hhs:iuiwop:0939
Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
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