Urban Population and Amenities

@inproceedings{Albouy2013UrbanPA,
  title={Urban Population and Amenities},
  author={David Albouy and Bryan L. Stuart},
  year={2013}
}
We use a frictionless neoclassical general-equilibrium model to explain cross-metro variation in population density based on three broad amenity types: quality of life, productivity in tradables, and productivity in non-tradables. Analytically, we demonstrate the dependence of quantities on amenities through substitution possibilities in consumption and production. Our calibrated model predicts large elasticities, consistent with variation in U.S. data, and estimates of local labor supply and… CONTINUE READING

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