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The Impact of Regulatory Intervention in the UK Store Card Industry

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  • Caroline Elliott
  • Yingqi Wei

Abstract

The paper examines the impact of regulatory intervention on store card interest rates, for a panel of UK store cards. Panel data estimation methods are used in conjunction with intervention analysis so that the impact of the investigations on store card interest rates can be examined. Results suggest that there is a significant negative impact on store card interest rates. The impact of macroeconomic factors and credit card interest rates on store card interest rates are also taken into account, results indicating that store cards and credit cards should be considered as competing sources of credit.

Suggested Citation

  • Caroline Elliott & Yingqi Wei, 2010. "The Impact of Regulatory Intervention in the UK Store Card Industry," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(1), pages 87-98.
    • Handle: RePEc:taf:ijecbs:v:17:y:2010:i:1:p:87-98
    DOI: 10.1080/13571510903516961
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    References listed on IDEAS

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    8. Caroline Elliott & Yingqi Wei & Pamela Lenton, 2010. "The Effect Of Government Policy On Tobacco Advertising Strategies," Bulletin of Economic Research, Wiley Blackwell, vol. 62(3), pages 243-258, July.
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    Cited by:

    1. Bonev, Petyo & Glachant, Matthieu & Söderberg, Magnus, 2018. "A Mechanism for Institutionalised Threat of Regulation: Evidence from the Swedish District Heating Market," Economics Working Paper Series 1805, University of St. Gallen, School of Economics and Political Science.
    2. Bonev, Petyo & Glachant, Matthieu & Söderberg, Magnus, 2020. "Testing the regulatory threat hypothesis: Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 62(C).
    3. Caroline Elliott & Palitha Konara & Yingqi Wei, 2016. "Competition, Cooperation and Regulatory Intervention Impacts on Independent School Fees," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 23(2), pages 243-262, July.

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