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Trade, access to varieties, and patterns of consumption

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  • Amandine Aubry

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, UNICAEN - Université de Caen Normandie - NU - Normandie Université)

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.

Suggested Citation

  • Amandine Aubry, 2022. "Trade, access to varieties, and patterns of consumption," Post-Print hal-03331798, HAL.
    • Handle: RePEc:hal:journl:hal-03331798
    DOI: 10.1111/roie.12567
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