Urban economics has traditionally viewed cities as having advantages in production and disadvantages in consumption. We … argue that the role of urban density in facilitating consumption is extremely important and understudied. As firms become … more mobile the success of cities hinges more and more on cities' role as centers of consumption. Empirically, we find that …

Hyperbolic Euler Relation implies that hyperbolic consumers will engage in high interest borrowing even when the consumption path … is downward sloping, will experience predictable sharp drops in consumption, and will fail to exhibit precautionary …