A dynamic analysis of entry regulations and productivity in retail trade

Florin Maican and Matilda Orth

International Journal of Industrial Organization, 2015, vol. 40, issue C, 67-80

Abstract: 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.

Keywords: Retail trade; Regulation; Imperfect competition; Dynamic structural model (search for similar items in EconPapers)
JEL-codes: L11 L81 L88 O30 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (24)

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Working Paper: A Dynamic Analysis of Entry Regulations and Productivity in Retail Trade (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:40:y:2015:i:c:p:67-80

DOI: 10.1016/j.ijindorg.2015.03.006

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