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Trade, access to varieties, and patterns of consumption

Abstract : This paper provides empirical evidence that product diversity drove a part of the evolution of consumers' spending in the US over the 1993-2018 period. The change in the set of varieties available led consumers to increase by 1.19% the share of their budget allocated to a sector subject to the average variety expansion over that period. I exploit the exogenous change in the range of products available due to the growth of international trade to identify the causal relation. Using this identification strategy, I show that through changes in product diversity, international trade has a sizable effect on the evolution of patterns of consumption in a country, especially relative to the price effect.
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Contributor : Laurent Jonchère Connect in order to contact the contributor
Submitted on : Thursday, September 2, 2021 - 10:38:05 AM
Last modification on : Sunday, June 26, 2022 - 3:12:50 AM



Amandine Aubry. Trade, access to varieties, and patterns of consumption. Review of International Economics, Wiley, 2021, ⟨10.1111/roie.12567⟩. ⟨hal-03331798⟩



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