Land use regulation and productivity—land matters: evidence from a UK supermarket chain

Paul Cheshire · Christian A. L. Hilber · Ioannis Kaplanis

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Regional Economics and Spatial Analysis Local Governance and Planning Urban Planning and Governance

Abstract

We use store-specific data for a UK supermarket chain to estimate the impact of planning on store output. Exploiting the variation in policies between England and other UK countries, we isolate the impact of Town Centre First (TCF) policies introduced in England. We find they directly reduced output by forcing stores onto less productive sites. We estimate TCF policies imposed a loss of output of 32% on a representative store opening after their rigorous implementation in 1996. Additionally, we show that, household numbers constant, more restrictive local authorities have fewer stores and lower chain sales within their areas.

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References

2004Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages 2002Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages 2010The Geographic Determinants of Housing Supply *2008A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index 2012Production Functions: The Search for Identification 2002Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry 2005Regulation and the High Cost of Housing in California 1995Production Functions: The Search for Identification

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