Data and Code For: The Modern Wholesaler: Global Sourcing, Domestic Distribution, and Scale Economies

Data and code for following abstract: <br>

Nearly half of all transactions in the $5 trillion market for manufactured goods in the United
States were intermediated by wholesalers in 2012, up from 32 percent in 1992. Seventy percent
of this increase is due to the growth of “superstar” firms - the largest one percent of wholesalers.
Estimates based on detailed administrative data show that the rise of the largest firms was driven
by an intuitive linkage between their sourcing of goods from abroad and an expansion of their
domestic distribution network to reach more buyers. Both elements require scale economies
and lead to increased wholesaler market shares and markups. Counterfactual analysis shows
that despite increases in wholesaler market power and markups, scale has benefits. Buyers gain
access to globally sourced varieties, nationwide distribution networks, and increased quality while
wholesalers decrease their marginal costs.

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