Consumption Amenities and City Population Density

By Jordan Rappaport
August 2006: Revised October 2007
(Previously titled "Consumption Amenities and City Crowdedness')
RWP 06-10
Research Division
Federal Reserve Bank of Kansas City


Abstract

     Population density, or “crowdedness,” varies widely among U.S. cities. A simple, static general equilibrium model suggests that moderate differences in cities’ consumption amenities can account for much of the observed variation in crowdedness. Empirical results confirm that amenities help support high density levels and suggest that they are becoming a more important determinant of where people choose to live. However, local productivity probably remains the more important cause of local crowdedness.

Keywords: Population density, consumption amenities, quality of life, productivity, urban agglomeration

JEL classification: R00, J00, I31


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