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

Hammarlund, Cecilia LU and Nordin, Martin LU (2025) In Journal of Regional Science 65(1). p.156-188
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.

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author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
commercial service, economic performance, government support, grocery stores, place-based policy, regression discontinuity design, survival
in
Journal of Regional Science
volume
65
issue
1
pages
156 - 188
publisher
Wiley-Blackwell
external identifiers
  • scopus:85205309683
ISSN
0022-4146
DOI
10.1111/jors.12735
language
English
LU publication?
yes
id
2efc6dfd-7038-41f7-a60a-1bd31f1c89a0
date added to LUP
2025-01-02 14:49:14
date last changed
2025-04-04 15:01:31
@article{2efc6dfd-7038-41f7-a60a-1bd31f1c89a0,
  abstract     = {{<p>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.</p>}},
  author       = {{Hammarlund, Cecilia and Nordin, Martin}},
  issn         = {{0022-4146}},
  keywords     = {{commercial service; economic performance; government support; grocery stores; place-based policy; regression discontinuity design; survival}},
  language     = {{eng}},
  number       = {{1}},
  pages        = {{156--188}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{Journal of Regional Science}},
  title        = {{The impact of government support on rural grocery stores—A regression discontinuity approach}},
  url          = {{http://dx.doi.org/10.1111/jors.12735}},
  doi          = {{10.1111/jors.12735}},
  volume       = {{65}},
  year         = {{2025}},
}