Are Regional Differences in Utility Eliminated over Time?: Evidence from Germany
AbstractHedonic theory assumes that changes in land prices and wage rates eliminate the utility advantages of differing locations. Using happiness data from the German socio-economic panel this paper empirically tests whether regional utility differences exist and if so whether utility levels show any tendency to converge over time. Empirical analysis reveals substantial differences in utility over different regions of Germany. Analysing a panel of data indicates that even if individual utility levels are at any one moment in disequilibrium they are rapidly converging over Germany for all types of individuals.
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Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 16.
Length: 13 p.
Date of creation: 2007
Date of revision:
Convergence; Hedonic Analysis; Happiness; Migration; Germany;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
- NEP-LAB-2008-01-05 (Labour Economics)
- NEP-UPT-2008-01-05 (Utility Models & Prospect Theory)
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