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SERC/Urban and Spatial Programme Discussion Paper
Land Use Regulation and Productivity - Land Matters: Evidence from a UK Supermarket Chain
Paul Cheshire, Christian A. L. Hilber and Ioannis Kaplanis August 2013
Paper No' SERCDP0138:
Full Paper (pdf)

JEL Classification: D2; L51; L81; R32

Tags: retail productivity; land use regulation; town centre first; local regulatory constraints

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 percent 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.

This paper has been published as:
Land use regulation and productivity—land matters: evidence from a UK supermarket chain, Paul C. Cheshire, Christian A. L. Hilber and Ioannis Kaplanis, Journal of Economic Geography Volume 15, Issue 1, January 2015