| 1. |
- Maican, Florin G., 1975, et al.
(författare)
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A dynamic analysis of entry regulations and productivity in retail trade
- 2015
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Ingår i: International Journal of Industrial Organization. - : Elsevier BV. - 0167-7187. ; 40, s. 67-80
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Tidskriftsartikel (refereegranskat)abstract
- Quantifying possible inefficiencies 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 flexible with respect to how local market regulations influence 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.
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| 2. |
- Maican, Florin G., 1975, et al.
(författare)
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Costs of misspecification in break-model unit-root tests
- 2012
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper examines power issues for the ADF and four break models (Perron 1989, Zivot and Andrews 1992) when the DGP corresponds to one of the break models. Choosing to test an incorrect break model can but need not greatly reduce the probability of rejecting the null. Break points that are relatively early in the sample period have substantial effects of increasing power. For modest shifts in time trends, simply including a time trend without shift in the model preserves power, but not for large time-trend shifts.
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| 3. |
- Maican, Florin G., 1975, et al.
(författare)
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Costs of misspecification in break-model unit-root tests
- 2014
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Ingår i: Applied Economics. - : Informa UK Limited. - 0003-6846 .- 1466-4283. ; 46:1, s. 111-118
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Tidskriftsartikel (refereegranskat)abstract
- This article examines power issues for the ADF and four break models (Perron, 1989; Zivot and Andrews, 1992) when the DGP corresponds to one of the break models. Choosing to test an incorrect break model can, but need not, greatly reduce the probability of rejecting the null. Break points that are relatively early in the sample period have substantial effects of increasing power. For modest shifts in time trends, simply including a time trend without shift in the model preserves power, but not for large time-trend shifts.
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| 4. |
- Maican, Florin G., 1975, et al.
(författare)
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Determinants of Economies of Scope in Retail
- 2020
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- This paper studies the determinants of economies of scope and quantifies their impact on the extensive and intensive product margins in retail. We use a framework based on a multiproduct technology to model stores’ incentives to expand product variety. Using novel Swedish data on product categories and stores, we find that high-productivity stores offer more product categories and sell more of all product categories. Stores with high demand shocks specialize in fewer product categories and sell more top-selling product categories. Policy simulations show that investments in technology increase the extensive and intensive product margins, especially benefitting stores in urban markets because of their productivity advantage. Learning from demand to increase productivity and variety is crucial in rural markets. Reducing the role of uncertainty in both productivity and demand shocks endorses product variety and raises sales and market share.
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| 5. |
- Maican, Florin G., 1975, et al.
(författare)
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Determinants of economies of scope in retail & nbsp
- 2021
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Ingår i: International Journal of Industrial Organization. - : Elsevier BV. - 0167-7187. ; 75
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Tidskriftsartikel (refereegranskat)abstract
- This paper studies the determinants of economies of scope and quantifies their impact on the extensive and intensive product margins in retail. We use a framework based on a multiproduct technology to model stores & rsquo; incentives to expand product variety. Using novel Swedish data on product categories and stores, we find that high-productivity stores offer more product categories and sell more products of all categories. Stores with high-demand shocks specialize in fewer product categories and sell more products of top selling categories. Policy simulations of regional programs that target the determinants of economies of scope show that investment subsidies and mentoring support for low productivity stores increase the number of product categories and sales per product category, especially benefiting stores in rural markets. (c) 2021 Elsevier B.V. All rights reserved.
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| 6. |
- Maican, Florin G., 1975, et al.
(författare)
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Entry Regulations and Product Variety in Retail
- 2021
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- This paper estimates a dynamic model of store adjustments in product variety that considers multiproduct service technology to evaluate the impact of entry regulations on variety and long-run profits in Swedish retail. Using rich data on stores and product categories, we find that more liberal entry regulation increases productivity and decreases the adjustment costs of variety. Counterfactual simulations of modest liberalizations of entry incentivize incumbents to offer more product categories to consumers while increasing efficiency and long-run profits. Regional differences are reduced as consumers and incumbents obtain more benefits in markets with restrictive regulation. Generous liberalizations of entry induce net exit of product categories and harm incumbents in markets with limited demand.
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| 7. |
- Maican, Florin G., 1975, et al.
(författare)
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ENTRY REGULATIONS, WELFARE, AND DETERMINANTS OF MARKET STRUCTURE
- 2018
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Ingår i: International Economic Review. - : Wiley. - 0020-6598. ; 59:2, s. 727-756
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Tidskriftsartikel (refereegranskat)abstract
- Welfare effects of entry regulations are theoretically ambiguous in differentiated product markets. We use a dynamic oligopoly model of entry and exit with store-type differentiation and static price setting to evaluate how entry regulations affect long-run profitability, market structure, and welfare. Based on unique data for all retail food stores in Sweden, we estimate demand, recover variable profits, and estimate entry costs and fixed costs by store type. Counterfactual policy experiments show that welfare increases when competition is enhanced by lower entry costs. Protecting small stores by imposing licensing fees on large stores is not welfare enhancing.
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| 8. |
- Maican, Florin G., 1975
(författare)
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Essays in Industry Dynamics on Imperfectly Competitive Markets
- 2010
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis consists of four empirical essays on imperfectly competitive markets. Entry of large (“big-box”) stores along with a drastic fall in the total number of stores is a striking trend in retail markets. The first essay uses a dynamic structural model to estimate total factor productivity in retail. Then we assess whether entry of large stores drives exit and growth in the productivity distribution of incumbents. Using detailed data on all retail food stores in Sweden, we find that local market characteristics, selection, and nonlinearities in the productivity process are important when estimating retail productivity. Large entrants force low productivity stores to exit and surviving stores to increase their productivity growth. Growth increases most among incumbents in the bottom part of the productivity distribution, and then declines with the productivity level of incumbents. We use political preferences in local markets to control for endogeneity of large entrants. Our findings suggest that large entrants play a crucial role for driving productivity growth. The second essay proposes a dynamic structural model to estimate productivity when productivity evolves as an endogenous process and firms decide how much to invest depending on the competitive pressure they face. Using data on all manufacturing firms in Sweden, this paper finds that open market policies and entrepreneurship policies complement R&D policies and are important drivers of the competitiveness of established firms. Conservative estimates suggest that the optimal investment is at least 0.7 to 2.5 times the actual investment in R&D for a median firm and 2 to 4 times for a firm located in the upper part of the productivity growth distribution. The third essay proposes a fully dynamic oligopoly model to estimate the costs of repositioning store formats together with sunk costs of entry and sell-off values of exit in the retail industry. In differentiated product markets, when firms are affected by demand shocks, they may react by repositioning their products, which in turn affects market structure. The model gives important information about driving forces behind format changes and how such repositioning can be linked to entry and exit. Using data from Sweden, the results indicate that both repositioning and entry costs increase with market size, and their growth decreases when moving to larger markets. Small markets have higher sell-off values than repositioning costs, but large entry costs. The difference between higher entry and lower repositioning costs explains why the number of observed repositionings is higher than the number of entrants. Since entry is regulated in most OECD countries, repositioning costs and their link to competition have important implications for competition policy. The fourth essay proposes a fully dynamic structural model to analyze the impact of the 2001 dot-com bust on the productivity dynamics and the cost structure for IT services. Aggregate demand shocks such as the burst of the 2001 dot-com bubble affect firms’ behavior and, therefore, the market structure. The empirical application builds on an eight year panel dataset that includes every IT service firm in Sweden and is representative for many other European countries. Essay four finds that incumbents are more productive than entrants and net exit contributed the most to productivity growth in the IT services after the dot-com bust. The fixed investment and labor costs are higher for software but lower for operational services after the dot-com bust. Finding the relative importance of fixed costs is a step closer to being able to link policies that affect adjustment costs in IT services.
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| 9. |
- Maican, Florin G., 1975
(författare)
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From Boom to Bust and Back Again: A dynamic analysis of IT services
- 2012
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Aggregate shocks in demand such as the burst of the 2001 dot-com bubble affect firms’ behavior and, therefore, the market structure. This paper proposes a fully dynamic oligopoly model to evaluate the impact of aggregate demand shocks on entry and exit costs as well as on investment and labor adjustment costs in IT services. The empirical application builds on an eight year panel dataset that includes every IT service firm in Sweden. The paper finds higher fixed investment and labor adjustment costs for software but lower for operational services after the dot-com bust. The entry costs for software were six times lower than for operational services, which might explain the large number of entrants in software. Entrants are found less productive than incumbents and net exit contributed the most to productivity growth in the IT services after the dot-com bust. For policy makers, the changes in cost structure give key information about industry dynamics and its impact on high-skilled jobs.
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| 10. |
- Maican, Florin G., 1975, et al.
(författare)
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Productivity Dynamics and the Role of "Big-Box" Entrants in Retailing
- 2008
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Entry of large (?big-box?) stores along with a drastic fall in the total number of stores is a striking trend in retail markets. In this paper we provide a dynamic structural model, controlling for unobserved prices and local market characteristics, to estimate total factor productivity in retail markets. Then we evaluate how increased competition from large entrants influences incumbents? productivity in local markets. Using detailed data on retail food stores in Sweden, we find that net entry substantially contributes to industry productivity growth. In local markets, productivity dispersion increases as a consequence of large entrants, i.e., low productive incumbents become less productive whereas high productive incumbents become more productive. We conclude that large entrants play a central role in explaining productivity differences across stores.
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