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Consumption amenities and city population density

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  • Rappaport, Jordan

Abstract

Population density varies widely among U.S. metro areas. A simple, static general equilibrium model demonstrates that moderate differences in metro areas' consumption amenities can cause extremely large differences in their population density. Such amenities are more strongly capitalized into housing prices than into wages. Empirical results suggest that amenities do indeed help support high density levels and that amenities are becoming a more important determinant of where people choose to live. Matching the empirical correlation between wages and density requires that amenities cause approximately one fifth of the cross-sectional variation in metro population density.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 38 (2008)
Issue (Month): 6 (November)
Pages: 533-552

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Handle: RePEc:eee:regeco:v:38:y:2008:i:6:p:533-552

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: Population density Consumption amenities Quality of life Productivity Urban agglomeration;

References

References listed on IDEAS
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Citations

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Cited by:
  1. Kosei Fukuda, 2012. "Population growth and local public finance in Japanese cities," Applied Economics, Taylor & Francis Journals, vol. 44(15), pages 1941-1949, May.
  2. Partridge, Mark D. & Rickman, Dan S., 2012. "Integrating regional economic development analysis and land use economics," MPRA Paper 38291, University Library of Munich, Germany.
  3. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
  4. Desmet, Klaus & Rossi-Hansberg, Esteban, 2010. "Urban Accounting and Welfare," CEPR Discussion Papers 8168, C.E.P.R. Discussion Papers.
  5. Partridge, Mark D. & Rickman, Dan S. & Ali, Kamar & Olfert, M. Rose, 2010. "Recent spatial growth dynamics in wages and housing costs: Proximity to urban production externalities and consumer amenities," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 440-452, November.
  6. David C. Maré & Andrew Coleman & Ruth Pinkerton, 2011. "Patterns of population location in Auckland," Working Papers 11_06, Motu Economic and Public Policy Research.
  7. Jordan Rappaport, 2008. "The affordability of homeownership to middle-income Americans," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 65-95.
  8. David C. Maré & Andrew Coleman, 2011. "Estimating the determinants of population location in Auckland," Working Papers 11_07, Motu Economic and Public Policy Research.
  9. Ben said, Foued, 2014. "Tunisian Coastal Cities Attractiveness and Amenities," MPRA Paper 52961, University Library of Munich, Germany.
  10. Brown, Jason, 2014. "Production of natural gas from shale in local economies: a resource blessing or curse?," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 1-29.
  11. Krupka, Douglas J., 2009. "Some Evidence on the Nature of Urbanization Economies," IZA Discussion Papers 4573, Institute for the Study of Labor (IZA).
  12. André Mollick & Marie Mora, 2012. "The impact of higher education on Texas population and employment growth," The Annals of Regional Science, Springer, vol. 48(1), pages 135-149, February.
  13. Jeffrey C. Brinkman, 2013. "Congestion, agglomeration, and the structure of cities," Working Papers 13-25, Federal Reserve Bank of Philadelphia.
  14. Oliver Bischoff, 2010. "Explaining Regional Variation in Equilibrium Real Estate Prices and Income," Working Papers 036, Chair for Economic Policy, University of Hamburg.
  15. repec:gen:geneem:13121 is not listed on IDEAS
  16. Lee, Sanghoon & Li, Qiang, 2013. "Uneven landscapes and city size distributions," Journal of Urban Economics, Elsevier, vol. 78(C), pages 19-29.
  17. Jeanty, P. Wilner & Partridge, Mark & Irwin, Elena, 2010. "Estimation of a spatial simultaneous equation model of population migration and housing price dynamics," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 343-352, September.
  18. repec:gen:geneem:14012 is not listed on IDEAS
  19. David Albouy, 2009. "What Are Cities Worth? Land Rents, Local Productivity, and the Capitalization of Amenity Values," NBER Working Papers 14981, National Bureau of Economic Research, Inc.

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