Are Sunnier Cities Denser?

We set out an open, monocentric city with residential structures and reflect on how changes to an amenity index affcts the city. On the production side, the shock is represented by a productivity improvement 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.