Regulation and UK Retailing Productivity: Evidence from Microdata

24 Pages Posted: 22 Jun 2012

See all articles by Jonathan Haskel

Jonathan Haskel

Imperial College Business School

Raffaella Sadun

Harvard University - Strategy Unit; London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: July 2012

Abstract

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.

Suggested Citation

Haskel, Jonathan E. and Sadun, Raffaella, Regulation and UK Retailing Productivity: Evidence from Microdata (July 2012). Economica, Vol. 79, Issue 315, pp. 425-448, 2012. Available at SSRN: https://ssrn.com/abstract=2089211 or http://dx.doi.org/10.1111/j.1468-0335.2011.00903.x

Jonathan E. Haskel

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Raffaella Sadun

Harvard University - Strategy Unit ( email )

Harvard Business School
Soldiers Field Road
Boston, 02163
United States

HOME PAGE: http://people.hbs.edu/rsadun

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

HOME PAGE: http://cep.lse.ac.uk/_new/staff/person.asp?id=1758

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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