Premium
Regulation and UK Retailing Productivity: Evidence from Microdata
Author(s) -
Haskel Jonathan,
Sadun Raffaella
Publication year - 2012
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2011.00903.x
Subject(s) - microdata (statistics) , total factor productivity , retail trade , productivity , business , slowdown , census , fell , falling (accident) , agricultural economics , economics , commerce , economic growth , geography , medicine , population , demography , environmental health , sociology , cartography
We explore the effects of planning regulation on the UK retail sector between 1997 and 2003 using microdata from the UK census. We document a shift to smaller shops following a 1996 regulatory change that increased the costs of opening large stores. Our analysis suggests that total factor productivity ( TFP ) of multi‐store retail chains fell after the introduction of the reform due to the reduction in store size. Overall, the reduction in store size was associated with TFP of retail chains falling by 0.4% per annum, or 40% of the post‐1995 slowdown in UK retail TFP growth.