For questions, please contact Professor Sharon Traibermanemail@example.com and Professor Mike Gilrainefirstname.lastname@example.org
We provide the first cross-sectoral description of local consumption markets. Detailed credit card data show consumers have limited mobility and manage the spatial dimension of their transactions. In more frequently purchased sectors, expenditure declines faster with distance; further, the spatial distribution of transactions becomes more concentrated with income and less affected by travel cost shocks. We propose a simple theory of storability/durability of a sector's output as a new dimension affecting local consumption markets, and provide evidence that consumer mobility influences local employment, establishment density, and establishment size differentially across sectors. Our results have implications for the consequences of local shocks, place-based policies, and the geographic market definition in the assessment of horizontal mergers.