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Growing Resources for Growing Cities: Density and the Cost of Municipal Public Services in Brazil, Chile, Ecuador, and Mexico

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  • Libertun de Duren, Nora Ruth
  • Guerrero Compeán, Roberto

Abstract

This paper finds that per capita municipal spending on public services is strongly and non-linearly correlated to urban population density. Optimal expenditure levels for municipal services are achieved when densities are close to 9,000 residents per square kilometer. In this study of approximately 8,600 municipalities in Brazil, Chile, Ecuador, and Mexico, 85 percent are below this ideal density level. This analysis provides strong policy support for densification, particularly for medium-sized cities in developing countries, which are currently absorbing most of the world's urban population growth.

Suggested Citation

  • Libertun de Duren, Nora Ruth & Guerrero Compeán, Roberto, 2015. "Growing Resources for Growing Cities: Density and the Cost of Municipal Public Services in Brazil, Chile, Ecuador, and Mexico," IDB Publications (Working Papers) 7332, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:7332
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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