Work

The impact of government support on rural grocery stores—A regression discontinuity approach

Year: 2024

Type: article

Abstract: We evaluate a place‐based policy aimed at commercial service providers. In 2016, the Swedish government introduced special operating support for grocery stores in remote rural areas to slow down the process of store closures. We estimate the local causal effect in a regression discontinuity design framework using the fact that only stores located at least 15 km away from another store were eligible for the support. The results indicate a 15%–20% increase in store survival rates due to the support. For surviving stores, the effects on employment are negative, possibly due to labor‐saving investments.

Source: Journal of Regional Science

DOI: 10.1111/jors.12735

Authors: Cecilia Hammarlund, Martin Nordin

Institution: Lund University

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,660