Explaining Sunday shop policies
Dutch municipalities have the right to decide on Sunday shop opening hours. Despite positive effects on economic growth and employment, many municipalities restrict Sunday trading in one way or another. Based on 2003 data we show that especially religious and political affiliation, regional differences and the size of the municipalities explain the variation between between municipalities. The number and size of shops and household characteristics are significant although their influence seems to be smaller. There is less evidence that excessive competition with neighbouring municipalities induces shop opening on Sundays, although cross-border shopping seems to play a role. Population density has no effect.