Consumer City

44 Pages Posted: 19 Jul 2000  

Edward L. Glaeser

Harvard University - Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

Jed Kolko

Public Policy Institute of California

Albert Saiz

MIT Department of Urban Studies and Planning; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2000

Abstract

Urban economics has traditionally viewed cities as having advantages in production and disadvantages in consumption. We argue that the role of urban density in facilitating consumption is extremely important and understudied. As firms become more mobile, the success of cities hinges more and more on cities' role as centers of consumption. Empirically, we find that high amenity cities have grown faster than low amenity cities. Urban rents have gone up faster than urban wages, suggesting that the demand for living in cities has risen for reasons beyond rising wages. The rise of reverse commuting suggest the same consumer city phenomena.

Suggested Citation

Glaeser, Edward L. and Kolko, Jed and Saiz, Albert, Consumer City (July 2000). NBER Working Paper No. w7790. Available at SSRN: https://ssrn.com/abstract=236675

Edward L. Glaeser (Contact Author)

Harvard University - Department of Economics ( email )

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Jed Kolko

Public Policy Institute of California ( email )

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Albert Saiz

MIT Department of Urban Studies and Planning ( email )

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IZA Institute of Labor Economics

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