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Quality of Life in the Regions - Results for German Counties

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  • Thiess Büttner
  • Alexander Ebertz

Abstract

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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Bibliographic Info

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.

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Date of creation: 2007
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Handle: RePEc:ces:ifowps:_49

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Keywords: Land prices; regional income differentials; hedonic regression; quality of life; compensating wage differentials;

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References

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  1. Alberto Dalmazzo & Guido De Blasio, 2007. "Skill-Biased Agglomeration Effects and Amenities: Theory with an Application to Italian Cities," Department of Economics University of Siena, Department of Economics, University of Siena 503, Department of Economics, University of Siena.
  2. Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, American Economic Association, vol. 78(1), pages 89-107, March.
  3. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
  4. Florian Lehmer & Joachim Möller, 2010. "Interrelations between the urban wage premium and firm-size wage differentials: a microdata cohort analysis for Germany," The Annals of Regional Science, Springer, Springer, vol. 45(1), pages 31-53, August.
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Cited by:
  1. Weiß, Dominik, 2010. "Kompensieren Mietpreisunterschiede ungleichwertige Lebensverhältnisse?," Arbeitsmaterial der ARL: Aufsätze, Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften, in: Gleichwertigkeit der Lebensverhältnisse zwischen Politik und Marktmechanismus: Empirische Befunde aus den Ländern Sachsen, Sachsen-Anhalt und Thüri, pages 71-95 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
  2. Matthias Wrede, 2012. "Wages, Rents, Unemployment, and the Quality of Life," CESifo Working Paper Series 3803, CESifo Group Munich.
  3. Alexander Ebertz, 2008. "The Capitalization of Public Services and Amenities into Land Prices – Empirical Evidence from German Communities," Ifo Working Paper Series, Ifo Institute for Economic Research at the University of Munich Ifo Working Paper No. 63, Ifo Institute for Economic Research at the University of Munich.
  4. Karsten Rusche, . "Quality of Life in the Regions: An Exploratory Spatial Data Analysis for West German Labor Markets," Working Papers, Institute of Spatial and Housing Economics, Munster Universitary 200120, Institute of Spatial and Housing Economics, Munster Universitary.
  5. Oliver Bischoff, 2010. "Explaining Regional Variation in Equilibrium Real Estate Prices and Income," Working Papers 036, Chair for Economic Policy, University of Hamburg.
  6. Alexander Ebertz & Mandy Kriese & Marcel Thum & Helke Seitz, 2008. "Bewertung von lokalen Standortfaktoren für Haushalte und Unternehmen in Sachsen: Entwicklung von Indikatoren zur Überprüfung der Demographietauglichkeit von Förderprojekten der Sächsischen Aufbau," ifo Dresden Studien, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, number 46, October.
  7. Hiller, Norbert & Lerbsy, Oliver, 2014. "The capitalization of non-market attributes into regional housing rents and wages: Evidence on German functional labor market areas," CAWM Discussion Papers, Center of Applied Economic Research Münster (CAWM), University of Münster 71, Center of Applied Economic Research Münster (CAWM), University of Münster.
  8. Alexander Ebertz, 2008. "Die Wohnortwahl privater Haushalte und die Bewertung lokaler Standortfaktoren in den sächsischen Gemeinden," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 15(05), pages 14-22, October.
  9. Jerzy Michalek & Nana Zarnekow, 2012. "Application of the Rural Development Index to Analysis of Rural Regions in Poland and Slovakia," Social Indicators Research, Springer, Springer, vol. 105(1), pages 1-37, January.
  10. Annekatrin Niebuhr & Tanja Buch & Silke Hamann & Anja Rossen, 2012. "Jobs or Amenities – What determines the migration balances of cities?," ERSA conference papers ersa12p401, European Regional Science Association.
  11. Dominik Weiß, 2008. "Mietpreise und Lebensqualität: Ist das Wohnen in Ostdeutschland wirklich günstig?," IWH Discussion Papers, Halle Institute for Economic Research 12, Halle Institute for Economic Research.
  12. Rickman, Dan S., 2014. "Assessing Regional Quality of Life: A Call for Action in Regional Science," MPRA Paper 58109, University Library of Munich, Germany.
  13. Kristof Dascher, 2010. "Homeowner-made Housing Price Bubbles - East Germany's Example -," Discussion Paper Series, Department of International Economic Policy, University of Freiburg 11, Department of International Economic Policy, University of Freiburg, revised Feb 2010.
  14. Thiess Büttner & Alexander Ebertz, 2007. "Lebensqualität in den Regionen: Erste Ergebnisse für Deutschland," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 60(15), pages 13-19, 08.
  15. Benjamin Wirth, 2013. "Ranking German regions using interregional migration - What does internal migration tells us about regional well-being?," ERSA conference papers ersa13p1254, European Regional Science Association.

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