Working Paper
Consumption amenities and city crowdedness
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);
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Bibliographic Information
Provider: Federal Reserve Bank of Kansas City
Part of Series: Research Working Paper
Publication Date: 2006
Number: RWP 06-10