|
A Productivity Model of City Crowdedness By Jordan Rappaport |
|
Abstract Population
density varies widely across U.S. cities. A simple, static general
equilibrium model suggests that moderate-sized differences in cities’ total
factor productivity can account for such variation. Nevertheless, the
productivity required to sustain above-average population densities
considerably exceeds estimates of the increase in productivity caused by
such high density. In contrast, increasing returns to scale may be able to
sustain multiple equilibria at below-average population densities. Keywords:
Population density, productivity, urban agglomeration |
|