Diverging Trends in National and Local Concentration

Esteban Rossi-Hansberg, Pierre Daniel Sarte and Nicholas Trachter

No 25066, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The views expressed herein are those of the authors and do not necessarily represent the views of the Federal Reserve Bank of Richmond or the Federal Reserve System. We thank Eric LaRose and Sara Ho for outstanding research assistance.Using U.S. NETS data, we present evidence that the positive trend observed in national product-market concentration between 1990 and 2014 becomes a negative trend when we focus on measures of local concentration. We document diverging trends for several geographic definitions of local markets. SIC 8 industries with diverging trends are pervasive across sectors. In these industries, top firms have contributed to the amplification of both trends. When a top firm opens a plant, local concentration declines and remains lower for at least 7 years. Our findings, therefore, reconcile the increasing national role of large firms with falling local concentration, and a likely more competitive local environment.

JEL-codes: E23 L11 R12 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-eff and nep-ure
Note: EFG ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Published as Diverging Trends in National and Local Concentration , Esteban Rossi-Hansberg, Pierre-Daniel Sarte, Nicholas Trachter. in NBER Macroeconomics Annual 2020, volume 35 , Eichenbaum and Hurst. 2021

Downloads: (external link)
http://www.nber.org/papers/w25066.pdf (application/pdf)

Related works:
Journal Article: Diverging Trends in National and Local Concentration (2021)
Chapter: Diverging Trends in National and Local Concentration (2020)
Working Paper: Diverging Trends in National and Local Concentration (2019)
Working Paper: Diverging Trends in National and Local Concentration (2018)
Working Paper: Diverging Trends in National and Local Concentration (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:25066

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w25066

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().