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La Dolce Vita: Hedonic Estimates of Quality of Life in Italian Cities

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Author Info

  • Emilio Colombo

    ()

  • Alessandra Michelangeli
  • Luca Stanca

    ()

Abstract

This paper provides an assessment of quality of life in Italian cities using the hedonic approach. We analyze micro-level data for housing and labor markets to estimate compensating differentials for local amenities within five domains: climate, environment, services, society and economy. The estimated implicit prices are used to construct overall and domain-specific quality of life indices. We find that differences in amenities are reflected in substantial compensating differentials in housing prices, whereas the effects on wages are relatively small. Quality of life varies substantially across space and is strongly related to differences in public services and economic conditions. Overall, quality of life is highest in medium-sized cities of the Center-North, displaying relatively high scores in all the domains considered. Northern cities fare better with respect to services, social and economic conditions, while relatively worse for climate and environmental conditions.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper201.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 201.

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Length: 32 pages
Date of creation: Dec 2010
Date of revision: Dec 2010
Handle: RePEc:mib:wpaper:201

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Keywords: quality of life; hedonic prices; housing markets;

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Cited by:
  1. Becchetti, Leonardo & Pisani, Fabio, 2012. "Family money, relational life and (class) relative wealth: an empirical analysis on life satisfaction of secondary school students," AICCON Working Papers 101-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.

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