Working Paper No. 898

Productivity Dynamics and the Role of “Big-Box” Entrants in Retailing

Published: January 18, 2012, revised July and December 2014, August 2015Pages: 89Keywords: Retail markets; Imperfect competition; Industry dynamics; Productivity; Dynamic structural modelJEL-codes: C24, L11, L50, L81, O30

Productivity Dynamics and the Role of “Big-Box” Entrants in Retailing Florin Maican and Matilda Orth

The entry of large (“big-box”) stores and the accompanying drastic decrease in the overall number of stores represent a striking trend in retail. We use a dynamic model to measure the impact of the entry of large stores on incumbents’ productivity separate from demand while accounting for local markets and the endogeneity of entry. Using data on all retail food stores in Sweden, we find that incumbents’ productivity increases after the entry of large stores and that the magnitude of the increase declines toward the upper part of the productivity distribution. Our findings highlight that large entrants play a crucial role in driving productivity.

Matilda Orth


Ph: +46 8 665 45 31
Mob: +46 73 642 3824

Florin Maican


Ph: +46 31 786 4866
Mob: +46 76 235 3039

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

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In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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