Measuring the Value of Urban Consumption Amenities: A Time-Use Approach

Abstract

Existing studies show that the rising spatial segregation between skill groups in the U.S. led to increasing inequality of amenity access. Access to consumption amenities, in particular, is often highlighted as an important driver of local amenity profile. However, quantifying the inequality of access to consumption amenities is often faced with two challenges. First, because consumption amenities, such as restaurants, often benefit residents living beyond the immediate vicinity of the amenities, researchers must account for how the amenity benefits diffuse through space. Second, to evaluate how much the access to consumption amenities contributes to the overall value of local amenity profiles, researchers must identify the proper aggregation weights. I present a model of amenity choice that provides the micro-foundation for accounting for spatial diffusion and aggregation weights. The model can be disciplined by the empirical patterns of people’s time use interacting with the amenities. I demonstrate that correctly accounting for spatial diffusion and aggregation weights is important for accurately measuring the inequality of access to consumption amenities.