Egalim law: effects for consumers and the retailing industry

Loi EGAlim: quels effets pour les consommateurs et la grande distribution ?

Céline Bonnet and Pauline Leveneur ()
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Céline Bonnet: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Pauline Leveneur: CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique

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Abstract: This article analyzes the effect of the EGAlim law on prices and sales of food products. The IRI data from January 2017 to February 2020 reveal a 1% inflation during the first year following the EGAlim law. However, using the causal identification method of differences-in-differences, we show that the three measures of the law, the raising in the resale below cost threshold and the supervision in volume and value of promotions, do not have any significant effect on prices in the long run on the regular stock of stores, except for the first three months on the loss leaders specifically concerned by the raising of the resale below cost threshold. Moreover, our results suggest that the supervision of promotions would play a non-negligeable role in the increase in the prices paid by consumers.

Keywords: EGAlim law; Causal effect; Promotions supervision; Raising of the resale below cost threshold; Differences-in-differences approach; Loi EGAlim; Effet causal; Encadrement des promotions; Relèvement du seuil de revente à perte; Modèle de doubles différences (search for similar items in EconPapers)
Date: 2024-01-04
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Published in Revue Economique, 2024, 74 (5), pp.805-831. ⟨10.3917/reco.745.0805⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04523824

DOI: 10.3917/reco.745.0805

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