Park, Geumbi; Zhou, Xiaoqing; Zubairy, Sarah - National Bureau of Economic Research - 2026
This paper studies the critical but underexplored role of subcontracting in shaping the spatial and firm-level effects … key facts. First, subcontracting reallocates a substantial share of federal dollars across geographic areas, weakening the … link between the location of prime contracts and where spending ultimately occurs. Second, subcontracting shifts spending …