Dollar Store Impacts on Rural Economic Activity, Labor Markets, and Consumer Welfare

Project: Research project

Project Details


Our overall goal is to study the economic impact of dollar store expansion and growth on economic welfare in rural economies. Objective 1: Combine a spatial and temporal data set of dollar store expansion with local economic activity, labor market outcomes (employment and wages), and local prices for food and other consumer goods. Objective 2: Map the expansion of dollar store locations relative to their distribution centers and generate summary statistics comparing location decisions with measures of economic activity on a county and census-tract basis. Objective 3: Estimate econometric models that control for the endogeneity of market entry and location to identify the independent effect of dollar store entry on local-market wages, employment levels, business startup patterns, and consumer food expenditures. Objective 4: Use the econometric estimates to simulate the consumer-welfare effects of dollar-store entry, relative to counterfactuals that assume status quo retail locations, consumer driving patterns, and retail store-choices.
Effective start/end date9/28/219/30/23


  • USDA: Economic Research Service: $20,000.00


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