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1、CONSUMERSANDCITIESEdwardLGlaeser,JedKolko,AlbertSaizAbstractUrbaneconomicshastraditionallyviewedcitiesashavingadvantagesinproductionanddisadvantagesinconsumption.Wearguethattheroleofurbandensityinfacilitatingconsumptionisextremelyimportantandunderstudied.Asfirmsbecomemoremo
2、bile,thesuccessofcitieshingesmoreandmoreoncities’roleascentersofconsumption.Empirically,wefindthathighamenitycitieshavegrownfasterthanlowamenitycities.Urbanrentshavegoneupfasterthanurbanwages,suggestingthatthedemandforlivingincitieshasrisenforreasonsbeyondrisingwages.Theris
3、eofreversecommutingsuggeststhesameconsumercityphenomena.INTRODUCTIONThefutureofthecitydependsonthedemandfordensity.Ifcitiesaregoingtosurviveandflourish,thenpeoplemustcontinuetowanttoliveclosetooneanother.Agglomerationeffects–theeffectsofdensity–naturallydeterminetheextentto
4、whichurbandensityisattractive.Mosturbanscholarsthinkofcitiesasofferingpositiveagglomerationbenefitsintheproductivesphere,andashavingnegativeagglomerationeffects(orcongestioneffects)onnon-workconsumption.Afterall,firmsandworkersearnmoreincities.Incities,workerspayhigherrents
5、,commutelonger,andfacemorecrime.Thisbasicviewpoint–thatcitiesaregoodforproductionandbadforconsumption–colorsmostofurbaneconomicsandhasinfluencedmostthinkingonthefutureofcities.Thecriticalquestionsaboutthefutureofcitieshavealwaysbeen:(1)whethercitiescanmaintaintheirproductiv
6、eedgeintheworldofinformationtechnologyandspeedytransportation;and(2)whethertheserviceindustriesthatcurrentlydriveurbanemploymentwillstayincitiesorfollowmanufacturingplantsouttothenon-cityareas.Butwebelievethattoolittleattentionhasbeenpaidtotheroleofcitiesascentersofconsumpt
7、ion.Inthenextcentury,ashumanbeingscontinuetogetricher,qualityoflifewillgetincreasinglycriticalindeterminingtheattractivenessofparticularareas.Afterall,choosingapleasantplacetoliveisamongthemostnaturalwaystospendone’smoney.AsCosta(1997)shows,between1950and1990theshareofperso
8、nalincomeintheUnitedStatesspentontransportationandhousingrosefrom24to35%.Thisincre
