In order to assess differences in living conditions across German regions we apply the hedonic approach of Rosen (1979) and Roback (1982) to land-price and wage differences across Germany’s counties. Employing a recent survey of more than half a million Germans on a wide range of social and political issues we confirm that differences in amenities give rise to substantial differences in land prices. With regard to wages, however, we find only little effects of amenities. Relying on the land-price effects we assess the quality of life in each of the German counties and provide a comprehensive ranking.
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Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number
Ifo Working Paper No. 49.
Find related papers by JEL classification: R22 - Urban, Rural, and Regional Economics - - Household Analysis - - - Other Demand R32 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Other Production and Pricing Analysis
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