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Are Regional Differences in Utility Eliminated over Time?: Evidence from Germany

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  • David Maddison
  • Katrin Rehdanz

Abstract

Hedonic 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.

Suggested Citation

  • David Maddison & Katrin Rehdanz, 2007. "Are Regional Differences in Utility Eliminated over Time?: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 16, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp16
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.57332.de/diw_sp0016.pdf
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    References listed on IDEAS

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    Cited by:

    1. Frank Goetzke & Tilmann Rave, 2013. "Migration in Germany," International Regional Science Review, , vol. 36(2), pages 167-182, April.
    2. Johannes Vatter, 2012. "Well-Being in Germany: What Explains the Regional Variation?," SOEPpapers on Multidisciplinary Panel Data Research 435, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Johannes Vatter, 2012. "Well-Being in Germany: GDP and Unemployment Still Matter," RatSWD Working Papers 196, German Data Forum (RatSWD).
    4. Ahmadiani, Mona & Ferreira, Susana, 2019. "Environmental amenities and quality of life across the United States," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    5. Vatter, Johannes, 2012. "Well-being in Germany: What explains the regional variation?," FZG Discussion Papers 50, University of Freiburg, Research Center for Generational Contracts (FZG).

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    Keywords

    Convergence; Hedonic Analysis; Happiness; Migration; Germany;
    All these keywords.

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