Seim, Katja; Waldfogel, Joel - In: American Economic Review 103 (2013) 2, pp. 831-62
We estimate a spatial model of liquor demand to analyze the impact of government-controlled retailing on entry patterns. In the absence of the Pennsylvania Liquor Control Board, the state would have roughly 2.5 times the current number of stores, higher consumer surplus, and lower payments to...