Supplier Churn and Growth
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Supplier Churn and Growth
David Baqaee
University of California Los Angeles

It is widely believed that access to new suppliers generates a surplus for consumers and that this surplus drives long-run growth and trade. Despite its importance, little direct empirical evidence exists on the magnitude of this surplus. David R. Baqaee discusses this effect’s impact on both micro- and macroeconomic outcomes.

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