New Studies Investigate Social and Political Outcomes of "Big Box" Retail, Economic Recession

Professors of Economics Issue Separate Reports on the Impact of Megastores; Influence of Inequality on Election Outcomes
March 23, 2016

Rohnert Park, CA - The School of Business and Economics (SBE) at Sonoma State University (SSU) today announced the publication of new research by Dr. Michael Visser, Chair of the Department of Economics, and Dr. Florence Bouvet, Associate Professor of Economics. Professor Michael Visser's research study, "Market and Welfare Effects of Big Box Retail Entry in a Linear City Model with Oligopolistic Competition" is slated for publication in the Annals of Economics and Statistics Journal. Professor Florence Bouvet's study, "Income Inequality and Election Outcomes in OECD Countries: New Evidence Following the Great Recession of 2008-2009," was published in the March 2016 issue of the Electoral Studies Journal.

Professor Visser's research uses economic modelling and consumer theory to provide a framework for policymakers to assess the impact of large-scale retailers entering central business districts and community downtowns. The study takes a holistic approach in identifying key factors, including the relative quality of goods, efficiency of production, wage gap and retail employment, economic output, and costs of land and travel. 

"Contentious policy debates on big box development are playing out in communities across the U.S. and in countries around the world. This research lays the groundwork for sound urban economic policies and subsequent studies that protect both profitability and social welfare by understanding the impact on local businesses, the environment, workers' rights, and quality of life," Dr. Michael Visser, Chair of the Department of Economics said. "Big box retailers are now the largest private employers in the U.S. and Mexico, and elsewhere. Their size, success, and global nature provide a business model durable enough to survive lean economic times."

 

Professor Bouvet's research explores national election outcomes in 32 member countries of the Organization for Economic Co-operation and Development (OECD), including from North America, Europe, East Asia, New Zealand, and Australia. The study examines data between 1975 and 2013 to understand the influence of income inequality, political orientation, and economic growth and stagnation in public voting and approval of sitting governments.

"Prior to the recent economic crisis, voters held left-wing parties accountable for rises in income inequality. The new research expands existing literature in its finding that voters did not turn away from left-leaning parties during the Great Recession. Instead, they were inclined to vote for incumbent left-leaning governments following the rise in unemployment and income inequality," Dr. Florence Bouvet, Associate Professor of Economics said. "Further research will help us understand this change in attitude, and to what extent both media coverage and the severity of the recession, and related social issues, played a role. What's clear is that economic growth and to a lesser extent unemployment are consistent issues of importance to voters across countries and decades."

For more information regarding Dr. Michael Visser's study, "Market and Welfare Effects of Big Box Retail Entry in a Linear City Model with Oligopolistic Competition," or Dr. Bouvet's study, "Income Inequality and Election Outcomes in OECD Countries: New Evidence Following the Great Recession of 2008-2009," or other faculty and research, please call (707) 664-2220 or visit www.sonoma.edu/sbe