IDEAS home Printed from https://ideas.repec.org/p/fip/fedkrw/rwp16-03.html
   My bibliography  Save this paper

Productivity, congested commuting, and metro size

Author

Listed:
  • Rappaport, Jordan

    () (Federal Reserve Bank of Kansas City)

Abstract

The monocentric city model is generalized to a fully structural form with leisure in utility, congested commuting, and the equalizing of utility and perimeter land price across metros. Exogenous and agglomerative differences in total factor productivity (TFP) drive differences in metro population, radius, land use, commute time, and home prices. Quantitative results approximate observed correspondences among these outcomes across U.S. metros. Traffic congestion proves the critical force constraining population. Self-driving cars significantly increase the sensitivity of metro population to productivity. Population becomes less responsive to increases in productivity as metros become larger. Correspondingly, the productivity “cost” of metro population—the TFP required to support a given population—increases convexly with size. Benchmark estimates suggest that agglomerative productivity suffices to support increases in population from low levels, allowing chance to play a significant role in determining which locations with sufficient exogenous TFP develop into small metros. But agglomerative productivity falls considerably short of supporting increases in population from high levels, suggesting that large metros arise from strong “fundamentals” such as high exogenous TFP.

Suggested Citation

  • Rappaport, Jordan, 2016. "Productivity, congested commuting, and metro size," Research Working Paper RWP 16-3, Federal Reserve Bank of Kansas City.
  • Handle: RePEc:fip:fedkrw:rwp16-03
    DOI: 10.18651/RWP2016-03
    as

    Download full text from publisher

    File URL: https://doi.org/10.18651/RWP2016-03
    File Function: https://doi.org/10.18651/RWP2016-03
    Download Restriction: no

    More about this item

    Keywords

    City size; Commuting; Congestion; Land use; Metropolitan size; Self-driving cards; Time use;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedkrw:rwp16-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lu Dayrit). General contact details of provider: http://edirc.repec.org/data/frbkcus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.