The Economics of the ‘Buy Local’ Trend

The results of our study underline the significance of the explicit consideration of consumer and producer heterogeneity and the size and type of the locality when analyzing the market and welfare impacts of the ‘Buy Local’ trend. In addition to providing important new insights on the market and welfare impacts of the ‘Buy Local’ trend, our analysis can also provide a valuable theoretical grounding for empirical studies aimed at quantifying the economic impacts of the trend in different food product markets as well as the impact of current and emerging policies affecting the markets for local foods.