Consumption amenities and city crowdedness

Jordan Rappaport

No RWP 06-10, Research Working Paper from Federal Reserve Bank of Kansas City

Abstract: Crowdedness varies widely among U.S. cities. A simple, static general equilibrium model suggests that plausible differences in metro areas? consumption amenities can account for much of the observed variation. Under a baseline calibration, differences in amenities valued at 30 percent of average consumption expenditures suffice to support a twenty-fold difference in population density. Empirical results confirm that amenities help support crowdedness and suggest that they are becoming a more important determinant of where people choose to live. But for the moment, local productivity appears to be the more important cause of local crowdedness.

Keywords: Productivity; Consumption (Economics) (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-geo, nep-tur and nep-ure
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