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Consumption zones

Author

Listed:
  • Andrea Batch
  • Benjamin Bridgman
  • Abe Dunn
  • Mahsa Gholizadeh

Abstract

Economic geography data are typically reported using political units, such as counties, which often do not match economic units. Commuting zones (CZs) group counties into labor markets. However, CZs are not the most appropriate grouping for other economic activities. We introduce consumption zones (ConZs), groupings of counties appropriate for the analysis of consumption. We apply CZ methodology to payment card data, which report spending flows across US counties for fifteen industries. We find that different industries have different market sizes. Grocery stores have more than five times the number of ConZs as entertainment. We apply ConZs to measuring industry concentration.

Suggested Citation

  • Andrea Batch & Benjamin Bridgman & Abe Dunn & Mahsa Gholizadeh, 2025. "Consumption zones," Journal of Economic Geography, Oxford University Press, vol. 25(2), pages 191-213.
    • Handle: RePEc:oup:jecgeo:v:25:y:2025:i:2:p:191-213.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbae035
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    • Andrea Batch & Benjamin R. Bridgman & Abe C. Dunn & Mahsa Gholizadeh, 2023. "Consumption Zones," BEA Papers 0114, Bureau of Economic Analysis.

    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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