Abstract

We take advantage of the large differences in regulation and electoral results among Spanish municipalities and regions to measure the effect of both regional retail regulation and strict licensing policy on the market structure of large retail establishments in Spain. This allows us to shed light on the likely effects of adapting the Spanish regulation to the European Union’s Services Directive. Although our results suggest the existence of quite different approval policies in Spain, we find that the imminent adaptation of the Spanish regulation will likely have a modest impact on most local markets, except on those markets belonging to the Basque Country, Catalonia, and the Balearic Islands.

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