Full Citation

Title: Are Big Cities Really Bad Places to Live? Improving Quality-of-Life Estimates Across Cities

Citation Type: Working Paper

Publication Year: 2008

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Abstract: The standard revealed-preference hedonic estimate of a citys quality of life is proportional to thatcitys cost-of-living relative to its wage-level. Adjusting the standard hedonic model to account forfederal taxes, non-housing costs, and non-labor income produces quality-of-life estimates differentfrom the existing literature. The adjusted model produces city rankings positively correlated with popular-literatureand stated-preference rankings, and predicts how housing costs rise with wage levels, controlling foramenities. 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 previousfindings.

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Authors: Albouy, David

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Publication Number: 14472

Institution: National Bureau of Economic Research

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Publisher Location: Cambridge, MA

Data Collections: IPUMS USA

Topics: Migration and Immigration, Other

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