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The Output of retail activities: French evidence

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Often discussions of retail activities acknowledge that services are an important aspect of these activities but do not pursue the economic implications of this idea very far. The starting point of this analysis is that these distribution services are outputs of retail firms and fixed inputs into the household production functions of consumers. Among the economic consequences of this view is a simple but powerful theoretical framework for the empirical analysis of retail margins. The authors have applied this framework to the analysis of US 1982 Census data (Betancourt and Gautschi, 1991b), and in this paper the same framework is applied to the analysis of similar data for France

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