I define a composite amenity that provides aesthetic and consumption value to local residents: Urbanity. A novel data set of geo-tagged photos shared in internet communities serves as a proxy for urbanity. From the spatial pattern of house prices and photos I identify the value of urbanity in two of the largest cities in Europe: Berlin and London. I find an elasticity of indirect utility with respect to urbanity of about 1%. The aggregated willingness-to-pay equates to about $1bn per year in each city. The results demonstrate the important role cities play as centers of leisure, consumption, and beauty.
|Date of creation:||May 2013|
|Contact details of provider:|| Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp|
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- Gabriel M. Ahlfeldt & Georgios Kavetsos, 2014.
"Form or function?: the effect of new sports stadia on property prices in London,"
Journal of the Royal Statistical Society Series A,
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