Urban economics has traditionally viewed cities as having advantages in production and disadvantages in consumption. We argue that the role of urban density in facilitating consumption is extremely important and understudied. As firms become more mobile the success of cities hinges more and more on cities' role as centers of consumption. Empirically, we find that high amenity cities have grown faster than the low amenity cities. Urban rents have gone up faster than urban wages, suggesting that the demand for living in cities has risen for reasons beyond rising wages. The rise of reverse community suggests the same consumer city phenomena.
|Date of creation:||2000|
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