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Quality of life, firm productivity, and the value of amenities across Canadian cities

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  • David Albouy
  • Fernando Leibovici
  • Casey Warman

Abstract

We estimate qualityoflife and productivity differences across Canada's metropolitan areas in a hedonic generalequilibrium framework. These are based on the estimated willingnesstopay of heterogeneous households and firms to locate in various cities, which differ in their wage levels, housing costs, and land values. Using 2006 Canadian Census data, our metropolitan qualityoflife estimates are somewhat consistent with popular rankings, yet find Canadians care more about climate and culture. Quality of life is highest in Victoria for anglophones, Montreal for francophones, and Vancouver for allophones, and lowest in more remote cities. Toronto is Canada's most productive city; Vancouver is the overall most valuable city.

Suggested Citation

  • David Albouy & Fernando Leibovici & Casey Warman, 2013. "Quality of life, firm productivity, and the value of amenities across Canadian cities," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 379-411, May.
  • Handle: RePEc:cje:issued:v:46:y:2013:i:2:p:379-411
    DOI: 10.1111/caje.12017
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    Cited by:

    1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    2. David Albouy & Alex Chernoff & Chandler Lutz & Casey Warman, 2019. "Local Labor Markets in Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 533-594.
    3. Thomas Murray & David Maddison & Katrin Rehdanz, 2013. "Do Geographical Variations In Climate Influence Life-Satisfaction?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-21.
    4. Antoine Bonleu, 2017. "Sun, Regulation and Local Social Networks," Working Papers halshs-01502604, HAL.
    5. Huang, Daisy J. & Leung, Charles K. & Qu, Baozhi, 2015. "Do bank loans and local amenities explain Chinese urban house prices?," China Economic Review, Elsevier, vol. 34(C), pages 19-38.
    6. Norbert Hiller & Oliver Lerbs, 2015. "The capitalization of non-market attributes into regional housing rents and wages: evidence on German functional labor market areas," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(1), pages 49-72, February.
    7. Gustavo A. García, 2019. "Agglomeration economies in the presence of an informal sector: the Colombian case," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 355-388.
    8. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.
    9. Jørn Rattsø & Hildegunn E Stokke, 2015. "Handling amenities in income taxation: Analysis of tax distortions in a migration equilibrium model," Working Paper Series 16315, Department of Economics, Norwegian University of Science and Technology.
    10. Francesco Andreoli & Alessandra Michelangeli, 2014. "Welfare Measures to Assess Urban Quality of Life," Working Papers 278, University of Milano-Bicocca, Department of Economics, revised Jun 2014.
    11. Fredrik Carlsen & Stefan Leknes, 2019. "The paradox of the unhappy, growing city: reconciling evidence," Discussion Papers 907, Statistics Norway, Research Department.
    12. Jenna van Draanen & Kanna Hayashi & M.-J. Milloy & Ekaterina Nosova & Hennady Shulha & Cameron Grant & Lindsey Richardson, 2021. "Material Security as a Measure of Poverty: A Validation Study with People Who Use Drugs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(2), pages 501-521, September.
    13. Jørn Rattsø & Hildegunn E. Stokke, 2017. "National income taxation and the geographic distribution of population," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(5), pages 879-902, September.
    14. Takatoshi Tabuchi & Jacques†François Thisse & Xiwei Zhu, 2018. "Does Technological Progress Magnify Regional Disparities?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(2), pages 647-663, May.
    15. Shi, Tie & Zhu, Wenzhang & Fu, Shihe, 2021. "Quality of Life in Chinese Cities," MPRA Paper 105266, University Library of Munich, Germany.
    16. Roberto Gallardo del Angel, 2017. "A Quality of Life Index of Mexican cities: An equalizing-difference approach," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 14(1), pages 73-98, Enero-Jun.
    17. Paul Frijters & Benno Torgler & Grace Gao & Daniel Melser, 2016. "Revealed Preference Measures of Quality of Life in Australia's Urban and Regional Areas," The Economic Record, The Economic Society of Australia, vol. 92, pages 15-29, June.

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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