Are big cities really bad places to live? Improving quality-of-life estimates across cities

Type Working Paper
Title Are big cities really bad places to live? Improving quality-of-life estimates across cities
Author(s)
Publication (Day/Month/Year) 2008
URL http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.178.7620&rep=rep1&type=pdf
Abstract
The standard revealed-preference hedonic estimate of a city’s quality of life is proportional to that
city’s cost-of-living relative to its wage-level. Adjusting the standard hedonic model to account for
federal taxes, non-housing costs, and non-labor income produces quality-of-life estimates different
from the existing literature. The adjusted model produces city rankings positively correlated with popular-literature
and stated-preference rankings, and predicts how housing costs rise with wage levels, controlling for
amenities. Mild seasons, sunshine, and coastal location account for most quality-of-life differences;
once these amenities are accounted for, quality of life does not depend on city size, contrary to previous
findings.

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