U.S. Regional Population Growth 2000-2010: Natural Amenities or Urban Agglomeration?

Using a spatial hedonic growth model, this paper empirically examines the relative roles of natural amenities and urban agglomeration economies as determinants of U.S. regional growth patterns from 2000 to 2010. Natural amenities and urban agglomeration are measured using the USDA Economic Research Service county classification codes. The general finding is that natural amenities and urban agglomeration both influenced regional growth. However, the natural amenity ranking is estimated to be positively related to increased productivity over the period rather than increased attractiveness to households. Urban agglomeration is positively related to increased amenity attractiveness to households. Within Census regional analysis revealed a stronger role for household natural amenity demand in nonmetropolitan areas.