Recent research has emphasized path-dependence and the effect of vinta
ge factors in urban development. Jerusalem and Tel Aviv are cities whe
re the modern CBD is not in its historic location. Distance from the h
istoric center is taken as a proxy of housing and infrastructure vinta
ge. A polycentric urban population density function is used to assess
the relative importance of distance from the CBD and from the historic
center in explaining population density. Additionally, I examine econ
ometrically the validity of a number of population density functions,
and analyze the structure of the error variance and the design of appr
opriate measures of goodness of fit and hypothesis tests for regressio
n models of population density. The results show that distance from th
e historical center is an important factor in explaining population de
nsity but its explanatory power has declined over time. It is more sig
nificant than distance from the CBD in explaining residential density
in Tel Aviv and gross density in Jerusalem. It explains a larger propo
rtion of the variance in gross density in the inner city than does dis
tance from the CBD, but vice versa in the suburbs.