Working Paper No. 939

A Dynamic Analysis of Entry Regulations and Productivity in Retail Trade

Published: November 14, 2012, revised April and December 2014Pages: 82Keywords: Retail Trade; Regulation; Imperfect Competition; Dynamic Structural Model JEL-codes: L11; L81; L88; O30
Published version

A Dynamic Analysis of Entry Regulations and Productivity in Retail Trade Florin Maican and Matilda Orth


Quantifying possible ineciencies 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 exible with respect to how local market regulations in uence 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.

Matilda Orth

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Ph: +46 8 665 45 31
Mob: +46 73 642 3824
matilda.orth@ifn.se

Florin Maican

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Ph: +46 31 786 4866
Mob: +46 76 235 3039
florin.maican@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

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The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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