A Tax-Shaped Retail Landscape

Speaker: Dr. FANG Limin (University of British Columbia)

Venue: Zijingang Campus

Abstract: We investigate the impact that uniform "one-size-fits-all" tax policies have on shaping the retail landscape. An entry model demonstrates that tax effects on retailer entry can amplify market concentration. Using data about retail establishments in the United States, we show that while they are more likely to open in markets with favorable state tax policies, these markets become more concentrated as entry is dominated by the largest chains. Therefore, tax policies might impact the retail industry competitiveness, despite the policies' uniform design.