Residential density functions: An alternative to Muth's negative exponential model

A “base-price” model of a consumer is described and shown to be consistent with a variety of empirical results for United States cities. Each consumer, in a heterogeneous population, is assumed to trade a range of nonhousing goods and employment at locations not necessarily near the city center. A negative exponential function of distance from the city center is shown to be a reasonable approximation to a city's net residential density function. Differences in the relative shares, rather than absolute levels, of expenditure on housing and nonhousing goods are identified as a possible cause of spatial segmentation of a population.