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Accounting for Improved Brick and Mortar Shopping Experiences

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  • Rachel Soloveichik

    (Bureau of Economic Analysis)

Abstract

Brick and mortar retailers spent $484 billion providing “free” shopping experiences in 2016. For example, vehicle dealerships provide “free” test drives, book stores provide “free” book signings and grocery stores provide “free” food samples. To capture the value of “free” shopping experiences, the paper models them as an implicit barter transaction of shopping experiences for sales attention. The paper then modifies previously created productivity accounts for the wholesale and retail sector (Jorgenson, Ho and Samuels 2016) to include shopping experiences as a new industry output and sales attention as a new industry input.

Suggested Citation

  • Rachel Soloveichik, 2019. "Accounting for Improved Brick and Mortar Shopping Experiences," BEA Working Papers 0165, Bureau of Economic Analysis.
    • Handle: RePEc:bea:wpaper:0165
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    File URL: https://www.bea.gov/system/files/papers/WP2019-2_0.pdf
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    References listed on IDEAS

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    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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