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Abstract

We set out an open, monocentric city with residential structures and re‡ect on how changes to an amenity index a¤ects the city. On the production side, the shock is represented by a productivity improvemnt and a local wage increase and on the consumption side the shock is represented by an exogenous boost to the utility of a resident’s current commodity bundle. In each case the city’s population, land rent and footprint expand. In the second case there is an increase in density.

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