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Domestic Supply Chains in the US Are Fracturing Along Partisan Lines

Nandini Gupta and Swarnodeep Homroy
In new research, Nandini Gupta and Swarnodeep Homroy show that firms in the United States are choosing politically-aligned suppliers to insure their supply chains against disruption. Aligned relationships are markedly more resilient when shocks hit, but the insurance is paid for in higher input costs and less innovation.

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