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Sunnier, Denser and More Productive Cities

  • John Hartwick

    ()

    (Queen's University)

  • Michael Brolley

    ()

    (Queen's University)

We set out an open, monocentric city with residential structures and reflect how changes to the amenity index affect the city. On the consumption side, an amenity is represented by an exogenous boost to the utility of a resident's current commodity bundle. The city's population, land rent and footprint expand, and its density rises. We test for an amenity effect in local wages with household data for the US in 1990 and discover that city density is much stronger in explaining local premia than is the city population. We test for amenity effects in local house prices with the same data set.

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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1190.pdf
File Function: First version 2008
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1190.

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Length: 36 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:qed:wpaper:1190
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  1. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  2. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
  3. Donald R. Davis & David E. Weinstein, 2002. "Bones, bombs and break points: The geography of economic activity," Discussion Papers 0102-02, Columbia University, Department of Economics.
  4. Cragg, Michael & Kahn, Matthew, 1997. "New Estimates of Climate Demand: Evidence from Location Choice," Journal of Urban Economics, Elsevier, vol. 42(2), pages 261-284, September.
  5. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
  6. McGrath, Daniel T., 2005. "More evidence on the spatial scale of cities," Journal of Urban Economics, Elsevier, vol. 58(1), pages 1-10, July.
  7. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
  8. Duncan Black & Vernon Henderson, 1999. "A Theory of Urban Growth," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 252-284, April.
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